1123.1 - University of North Carolina at Chapel Hill Procedure on Reporting Gifts, Prizes and Awards Given to Employees

Introduction

Purpose

This Procedure was established to meet IRS regulations, including 26 U.S. Code § 132(e).

Procedure

Prior to processing or requesting awards, please consult Finance Policy 1123 - Policy on Taxation of Employees’ Gifts, Prizes and Awards to confirm eligibility and taxation status.

Cash Gifts, Prizes and Awards

Departments should process cash given to employees as gifts, prizes and awards (excluding gift certificates and gift cards) through ConnectCarolina's HR/Payroll module for SHRA and EHRA employees.

EHRA and SHRA employees require a Lump Sum Payment Request with the Payment Type of "Award Amount."

Gift Certificates and Gift Cards

Gift certificates or gift cards through Benefits Services are considered to be "cash equivalents" and are treated the same as gifts of cash per the Internal Revenue Service's "de minimus fringe benefits-Gift Certificates" regulation.

  • A campus voucher should be created for purchasing gift certificates or gift cards using account 113920.
  • Campus vouchers for this purpose must be payable to a departmental administrator for a cash advance (see Finance Policy 307 - Cash Advance Policy).
  • All gift certificates and gift cards provided to employees require a Gift/Prize/Award Documentation Form to be completed and submitted to Payroll Services, which will include them as taxable items on the employee's Form W-2 along with a deduction for applicable taxes.
  • All cash advances require a Cash Advance Settlement Form and a completed copy of the Gift/Prize/Award Documentation Form submitted to Accounting Services.

Non-Cash Gifts, Prizes and Awards

  • A campus voucher or P-Card can be used to purchase non-cash items to be given to employees for gifts, prizes and awards.
  • Use account 558924 for all non-cash gifts, prizes and awards to employees.
  • A Gift/Prize/Award Documentation Form is required for all non-cash gifts, prizes and awards in excess of the "de minimis" amount described in Finance Policy 1123.
  • The Gift/Prize/Award Documentation Form is submitted to Payroll Services.

Gifts, prizes and awards in excess of the "de minimis" amount are reported to Payroll Services as taxable items.

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures

Contact Information

Primary Contact
Subject Contact Telephone Fax E-Mail
Taxing Gifts, Prizes, Awards University Controller - Financial Reporting and Management 919-843-2694 919-962-4141 financialreporting@unc.edu

History

Revised:

  • September 18, 2017: Updated account number from 58410 to 112920 for creating vouchers to purchase gift certificates and gift cards.
  • April 6, 2016: Creation of new form 1123.1.1f, additional info and links.
  • October 1, 2014: Updated references to ConnectCarolina.
  • July 26, 2010
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Details

Article ID: 131405
Created
Thu 4/8/21 9:08 PM
Modified
Sun 11/13/22 1:58 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
06/14/2019 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director of Financial Reporting and Management Services
Last Review
Date on which the most recent document review was completed.
06/14/2019 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
06/14/2019 12:00 AM
Next Review
Date on which the next document review is due.
06/13/2020 12:00 AM
Origination
Date on which the original version of this document was first made official.
05/07/2010 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget