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.

In the right place? This page is about cash awards for employees. For non-cash employee awards, see Employee Gifts and Non-cash Awards: Overview. 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

This page has a friendly link that's easy to remember: http://blink.ucsd.edu/go/incentive

Buy & Pay

Gifts & Awards

• Employee Non-Cash
• Employee Limits
• Requesting an Exception
• Employee Length-of-Service
• Employee Prizes & Other Gifts
• Employee Recognition
• Employee Retirement Gifts
• Employee Sympathy Gift
• Gifts for Non-employees
• Elected & Appointed Officials
• Purchasing Flowers
• Incentive Award
  • Cash
  • Cash-Equivalent Development Allowance
  • Gift Certificates