Campus departments wishing to provide an employee with a recognition award or gift must conform to the guidelines as outlined below. Situations that may warrant a gift include recognition for a noteworthy work-related accomplishment, length of service, retirement, or sympathy.
UC policy aligns with IRS regulations. The Tax Cuts and Jobs Act (P.L. 115-97) that was signed into law on December 22, 2017, impacts the taxability of certain types of employee achievement awards. Specifically, gift cards provided to an employee for employee achievement are considered taxable wage income on and after January 1, 2018. If an employee receives such an award for length of service, then the value of the gift card must be reported by the department to the Central Payroll Office for appropriate federal and state income tax and FICA withholding. Updates to UC policy are pending further guidance from the IRS.