As we begin the holiday season, all departments should take note of a new policy adopted by the President’s Leadership Council with respect to employee recognition, awards, and events, according to Eric Barger, controller. This new policy was adopted to ensure compliance with tax regulations, appropriate use of University resources, and equity across the departments of the University. A significant point in the new policy is a general prohibition on the use of gift cards as gifts to employees. There may be infrequent exceptions to this general rule, and in those circumstances departments must have officer approval in advance and give notice to the Controller’s Office (so that the value of the card may be included in taxable income).
To clarify, the drawing items at the annual staff luncheon are not going to be taxed; other gifts outside that arrangement that will be taxed. Because of the random nature of the drawings, those benefits are considered “de minimis.” The new policy may be read at this link.
For more information contact the controller at x7393 or barger@up.edu.