In the right place? This page is about cash awards for employees. For non-cash employee awards, please see Employee Gifts and Non-cash Awards: Overview. For general information about incentive awards, see Employee Incentive Award Programs.
There are three award pools for incentive award funding:
- IAP: Incentive Award Program awards are subject to reimbursement from the central pool and used for represented employees.
- SRD: Staff Recognition and Development awards are subject to reimbursement from the central pool and are used for non-represented employees.
- AWD: AWD awards are paid from departmental funds and aren't subject to reimbursement from the central pool.
Accounting guidelines for awards funded with IAP or SRD funds:
Accounting guidelines for incentive awards funded with department funds (AWD funds):
| Type of award |
Accounting guidelines |
Cash awards, including cash allowances in any amount for development awards
Please see: How to Pay for Employee Incentive Awards: Cash |
- Must be paid through Payroll
- Are subject to payroll withholding and FICA taxes
- Can be funded only by department funds
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Cash-equivalent gift certificates
Please see: How to Pay for Employee Incentive Awards: Cash-Equivalent Gift Certificate
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- Must be paid through Disbursements with notification to Payroll.
- Are reportable on the employee's W-2 as income
- Are subject to payroll withholding and FICA taxes
- Can be funded only by department funds
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Need an expert? Contact George Gomez, (858) 534-3245.
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