Employee Gifts and Awards
It is recommended that University funds are not used for personal gifts such as weddings, birthdays, anniversaries, etc.
Since the IRS considers cash and gift cards/prepaid cards of ANY amount to be taxable compensation, it is further recommended that cash and gift cards/prepaid cards NOT be presented to employees as a gift or award.
| Type | Item | $ Limit | Taxable | Comments |
|---|---|---|---|---|
| Length of Service | Tangible personal property only (no tickets) | $400 | Only excess over limit. | Allowed only in 5-year increments. |
| Retirement | Tangible personal property only (no tickets) | $400 | Only excess over limit. | Allowed only upon retirement. |
| Sympathy / Birth or Adoption of Child | Tangible personal property or donation to charity | $100 or $200 if donation | Full amount if exceeds limit or $-0- if donation. | If donation, must go directly from UL to charity. |
| Achievement or Outstanding Service | Tangible personal property | $100 | Full amount if exceeds limit. | Limit to 1 per year and based on objective criteria. |
| Other De Minimis | Tangible personal property or nonnegotiable gift card 1 | $100 | Full amount if exceeds limit. |
General de minimis rules apply; must be provided infrequently. |
1 Nonnegotiable gift cards only confer a right to receive specified tangible property and are not redeemable for cash nor transferrable to other parties.