Guidelines for the Disbursement of Funds

Employee Gifts

Accounts that are not funded by mandatory student fees, contracts or grants, Available University Fund, state appropriations or restricted by donors may pay for an employee gift. Gifts must comply with Standard Administrative Procedure 31.01.99.M0.01: Taxation of Special Payments and Awards to Employees.

Is an employee gift taxable income to an employee?

  • If infrequent and less than $100 per year, it would not be considered taxable income.
o   An exception to this is gift cards. Gift cards in any dollar amount are tax-reportable income to the employee and would require a Request for Tax Withholding form to be submitted.

Retirement Gifts/Length of Service Awards

  • Length of Service Awards - These awards must be part of a meaningful presentation and given to an employee no more than once every five (5) years. Non-cash awards of $400 or less are not taxable.

  • Retirement Awards - May be excluded from income if the dollar amount of the award relates to the retiree's length of service. Documentation is to be provided describing the relationship between the retiree's length of service and the value of the award.

  • Safety Awards - Non-cash awards (up to $400) given to employees directly involved are not taxable. Any safety awards given to managers, administrators, other professional employees or clerical staff not directly involved with the safety performance will be fully taxable.

Achievement Awards

State accounts may pay for employee gifts considered achievement awards and are limited to $100 in a given year. Any amount above that must be paid on local funds and is considered taxable income to the employee as noted above.

Payment Request or Payment Card documentation at a minimum must include the employee's name and UIN. All employee gifts/awards are coded 5240.