I have a website where i would like to offer an incentive for people to contribute content. Once you reach a predefined amount of content that has been approved and added to the site you can earn a reward. For example, submit 10 guides that get approved, you earn X amount of dollars toward your total earnings. Once you reach a threshold of say $20 you unlock the ability to claim the reward.
Is this ok to do or do i need to declare this somehow? If i just offer something like a paypal transfer of money is this considered employment?
If the above is true, would it be negated if i offered a gift card? For example, one you get to $20, you can claim a $20 amazon gift card. Being what they are a gift card is a gift. Of course in this case you must earn your gift, but is this a legal way to get around things?
I run this website as a hobby. These rewards will be coming from my own pocket and not a registered company.