Gift Turkeys and Hams are not considered income to the employee.
Gift Turkeys and Hams are not considered as taxable income for an employee. Additionally, the corporation giving the gift does not have the liability of matching taxes.
The following is taken directly from the Internal Revenue Service Publication 17:
Holiday gifts. If your employer gives you a turkey,
ham, or other item of nominal value at
Christmas or other holidays, don’t include the
value of the gift in your income. However, if your
employer gives you cash or a cash equivalent,
you must include it in your income.
View the IRS publication relevant pages (2 pages)
View the entire IRS publication from the IRS site (292 pages)