The University Employee Recognition Awards chart, part of the administrative policy: Hospitality and Special Expenses, has been updated. The changes have been made as a result of additional guidance from the Internal Revenue Service. Please follow the revised chart effective immediately to ensure that the University and its employees are in compliance with income tax requirements.
Highlights of the changes:
- University Bookstore's gift cards presented to employees are subject to income tax for the employees, regardless of the gift card value. This is considered a cash equivalent and the IRS requires all cash equivalents to be included in income.
- University Bookstore coupons for specific items of personal property are not subject to tax as long as the value of the item is $75 or less, the coupon is provided infrequently and it is administratively impractical to account for the coupons. This is the equivalent of giving an employee a specific item of personal property.
Please read the requirements carefully and review the examples for additional guidance. If you have further questions, contact the Tax Management Office at firstname.lastname@example.org or 612-624-1053.
See: University Employee Recognition Awards chart (DOC)