Processing Gifts, Prizes and Awards to Employees

 

Taxable Gifts, Prizes, and Awards

Taxable gifts, prizes and awards must be processed via the payroll system. Prior to giving the gift, prize or award, the department must prepare a memo that includes:

1. Employee name

2. Employee GWid number

3. Amount or value of the gift, prize, or award

4. Description of the gift, prize,or award

5. Appropriate approval signatures from the head of the department giving the gift, prize, or award. 

The memo is then forwarded to Payroll Services for processing in the employee's payroll check.

Non-Taxable Gifts, Prizes, and Awards

Non-taxable gifts, prizes and awards may be paid or reimbursed by University Payables via the Payment Request Form. This form should indicate:

1. That the payment is a gift, prize, or award

2. Employee name and GWid number

3. Purpose of the gift, prize, or award

4. Clear description as to why the payment is not taxable (e.g., non-cash valued at $100 or less, length of service or safety award) 

These payments should be made using account 52615, Employee Special Activity. Please note that account 57121, Prizes and Awards, should not be used for payments to employees. This account is for expenses associated with academic or athletic prizes and awards to university students only.