Policy Manual
University of North Texas

Classification
Number: 1.6.6.1

Page 1 of 2

Date Issued: 7/00; 9/01 ; 11/05*

SUBJECT: TAX RULES FOR EMPLOYEE GIFTS AND AWARDS

APPLICABILITY: ALL FACULTY AND STAFF

See chart below. Questions concerning tax issues relating to employee awards and gifts should be directed to the University Tax Accountant in Payroll, Marquis Hall, x 7014.

Type of Award/Gift

Will be included as supplemental wages on IRS Form W-2 (subject to payroll taxes)

Not Taxable

Cash or cash equivalents awards

(includes all gift certificates, regardless of the amount)

All amounts

Food items or other merchandise

of nominal value given at holidays to promote employee goodwill

Amounts of nominal value

(generally $50 or less at UNT)

* Length of service award under

non-qualified plan (Note: must

be given only once during a calendar year and the award must be at least five years apart)

Amounts in excess of $400 per

calendar year

Amounts of $400 or less per

calendar year

* Length of service award under

qualified plans (Note: must be given only once during a calendar year and the award must be given at least five years apart)

Amounts in excess of $1,600 per

calendar year

Amounts of $1,600 or less per

calendar year

* Safety achievement award under

non-qualified plan (Note: see other restrictions below**)

Amounts in excess of $400 per

calendar year

Amounts of $400 or less per

calendar year

* Safety achievement award under

qualified plan (Note: see other restrictions below**)

Amounts in excess of $1,600 per

calendar year

Amounts of $1,600 or less per

calendar year

Retirement gift given as length of

service award

Amounts in excess of $400

Amounts of $400 or less

Retirement gift not given as length of service award

Amounts in excess of $50

Amounts of nominal value ($50 or less at UNT)

Flowers, books, gift baskets, pins, or similar non-cash items given for special purposes not shown in above categories in this chart.

Generally amounts in excess of $50 (this limit will not apply to flowers or other gifts given in the case of a family death or employee illness)

Documented amounts of $50 or less at UNT

* A non-qualified plan is one in which the average cost of all the employee achievement awards (excluding awards of nominal value) given at UNT during the calendar year is more than $400. A qualified plan is an established written plan or program that does not favor highly compensated employees as to eligibility or benefits and the average cost of all employee achievement awards (excluding awards of nominal value) given at UNT is $400 or less per calendar year.

** An award will not qualify as a safety achievement award if it is given to either of the following : 1) a manager, administrator, clerical employee, or other professional employee or 2) if it is given to more than 10% of the eligible employees at NT during the calendar year.

*Reviewed with no changes 9/05

Back | Next | Home
Vol 1 Human Resources | Vol 2 Administrative & Fiscal | Vol 3 Academic & Student