In 2010 Stone Wall Limited went into voluntary liquidation and Rock Wall Limited was put into liquidation.
The entire $112,951 remains unpaid.
Gifford's lawyer, Kevin Smith, said Gifford was in "dire straits" and had limited work with the Wellington City Council to provide for his family.
He had to sell all of his assets, Mr Smith said.
"He really struggles to feed them [his family] on what he earns."
Judge Wainwright acknowledged Gifford's "dire straits" and said a home detention sentence would prevent him from earning for his family.
"[Your] family depends on your income for their financial survival."
"You are a person who is genuinely remorseful for the actions that you took," she said.
Speaking outside court, Gifford said he felt "obligated" to pay his employees before paying PAYE.
"Perhaps I should have laid my workers off a long time ago, but at the same time we're always hopeful and as a Kiwi we're always optimistic."
The construction of stone walls was not a great money maker, he said.
"We have struggled over the years, being self-employed and I suppose that goes with the territory of being self-employed."
But he said he remained dedicated to Carlucci Land and planned to keep it operating.
"Through all of this, the crown jewels have been saved."