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Employee Incentive Award Program: Accounting Guidelines

Employee incentive awards can be funded by the Incentive Award Program, the Staff Recognition and Development Program, or by department funds.

Background and policy information: Read Human Resources Incentive Award Guidelines (PDF) for specific guidelines.

For non-cash employee awards, see Employee Gifts and Non-cash Awards. For general information about incentive awards, see Employee Incentive Award Programs.

There are 3 award pools for incentive award funding:

  1. IAP: Patient Care Technical (EX) and Police Officers (PA) are eligible for awards under the Incentive Award Program (funded from the IAP assessment).
    • Eligible DOS codes are IAP, TIA, and SAP.
  2. SRD: Policy covered (unit 99) career and limited employees are eligble for awards under the Staff Recognition and Development program (funded from the SRD asessment).
    • Eligible DOS codes are SRD, TIA, and SAP.

    Accounting guidelines for awards funded with IAP or SRD funds:

    Type of award Accounting guidelines

    Cash awards (any amount)

    See: How to Pay for Employee Incentive Awards: Cash

    • Must be paid through Payroll
    • Are subject to payroll withholding and FICA taxes
    • Are funded from the IAP or SRD pool

    Development awards, including cash allowances for registration fees, travel expenses, and other related expenses

    See: How to Pay for Employee Incentive Awards: Cash-Equivalent Development Allowance

    • Must be paid through Payroll
    • Are subject to payroll withholding and FICA taxes
    • Are funded from the IAP or SRD pool
  3. Department-funded awards: All employee groups are eligible for department-funded awards (paid from a department's own funds).
    • Eligible DOS codes are LEA, TIL, and SAL.

    Accounting guidelines for incentive awards funded with department funds:

    Type of award Accounting guidelines

    Cash awards, including cash allowances in any amount for development awards

    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
    Cash-equivalent gift certificates

    See: How to Pay for Employee Incentive Awards: Cash-Equivalent Gift Certificate
    • 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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