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Operations Manual The University of Iowa

PART III. HUMAN RESOURCES
DIVISION VIII MISCELLANEOUS


CHAPTER 38: TAXATION OF GIFTS, PRIZES, and AWARDS TO EMPLOYEES

(10/13)

Note: Effective October 2013, this is a new policy.

38.1 General
38.2 Cash Awards and Gift Certificates
38.3 Exceptions for Length-of-Service, Retirement, and Safety Awards
38.4 Appropriate Funding Sources

38.1 GENERAL.
As with all purchases utilizing University funds, expenditures for awards, gifts, and celebrations must be in accordance with federal and state laws, bargaining agreements, grant restrictions, and University policies and procedures. Departments must be aware of tax implications and limitations before awarding employees.

38.2 CASH AWARDS AND GIFT CERTIFICATES.
Employees who handle cash and gift certificates must follow UI cash handling procedures. See www.uiowa.edu/~cashhand/index.html.

38.3 EXCEPTIONS FOR LENGTH-OF-SERVICE, RETIREMENT, AND SAFETY AWARDS.

38.4 APPROPRIATE FUNDING SOURCES.
Appropriate funding sources. Funding for gifts, prizes, and awards should be evaluated based on the department's current budget, the type of expenditure, and justification for the purchase. Non-general education fund resources are preferable, and departments should refer to Sponsoring Agency restrictions to ensure it is allocable and allowable before funding from grant sources.


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Page last updated October 2013 by Office of the Senior Vice President for Finance and Operations