To: MOU Financial Leads
Finance Council
University Business Managers
School/Division HR Officers and Secondary Contacts
From: Martha Pendergrass, Director, Procurement Services
Re: Policy update regarding Taxation of Employees’ Gifts, Prizes and Awards
Please be aware that the following finance policies and procedures have been updated or created to reflect recent changes. Please share with staff in your school/department as appropriate.
- Policy 1123 – Taxation of Employees’ Gifts, Prizes and Awards
Updates include:- Clarification of what common University gifts, prizes and awards are taxable
- Explanation of new IRS “de minimus fringe benefit” policy allowing small items to be awarded without tax consequence
- Increase of University de minimus amount from $40 to $100
- Additional FAQ to clarify common questions
- Reference to OHR’s Departmental Recognition Policy
- Procedure 1123.1 – Reporting Gifts, Prizes and Awards Given to Employees
Updates include:- Instructions for using the new Gift/Prize/Award Documentation form (1123.1.1f)
- Link added to the updated Cash Advance Settlement Cover Sheet (307.1.1rd)
- 1123.1.1f – Gift/Prize/Award Documentation Form
- New form helps University Payroll Services track gifts, prizes and awards in excess of the de minimus amount for tax purposes
- 307.1.1rd – Cash Advance Settlement Cover Sheet
Updates include:- Added reference to the new Gift/Prize/Award Documentation form (1123.1.1f)
Many thanks to the Finance Council Communications, Policy and Strategy Subcommittee for their time, suggestions and work in crafting these changes. This was truly a group effort that involved subcommittee working group members, Finance business owners and OHR.
If you have questions, please contact Martha Pendergrass (mjpender@email.unc.edu).