THE UNIVERSITY OF NORTH CAROLINA
AT
CHAPEL HILL

MEMORANDUM

One of the ways in which the University seeks to reward employee service and achievement is through campus and departmental recognition programs. Gifts, prizes, and awards are given to employees under certain circumstances in recognition of their efforts. The Policy on Taxation of Gifts, Prizes, and Awards referenced below has been developed to provide additional guidance on the taxability of these forms of recognition.

To ensure compliance with applicable tax regulations for such payments, the policy provides information on the taxability of Cash and Non-cash awards. The criteria by which certain awards may qualify as a non-taxable benefit is provided, and information on processing awards and reporting requirements is also included in the policy.

The policy is not a substantive change to current practices; but it does provide useful guidance regarding the tax issues for employee awards. The policy will be accessible via the DDD web site at http://www.unc.edu/depts/finance/ddd/. In the near future, the policy will also be maintained and available under the Financial Reporting and Management (FRM) section of the Business Manual at http://www.ais.unc.edu/busman/bmhome.html. Departments should contact the University Controller’s Office at 962-1370 for further guidance in regards to this policy.
 
 

cc: University Business Managers (via email listserv)

Policy on Taxation of Gifts, Prizes and Awards