Skip to main content
Blink

System Status: 

Employee Non-Cash Gifts and Awards

Find out how to award employees with non-cash awards and give gifts in certain circumstances.

Departments can present employees with non-cash awards to recognize accomplishments, length of service, retirement, as an expression of sympathy or as an incentive prize.

Approval

Department heads have the authority to approve transactions.

Exceptions

An exception to the per-person limit outlined below will create additional taxable income for the employee and should be avoided.  Disbursements will review requests for exceptions on a case by case basis to determine if the exception is allowable.

Payment

For Disbursements gift card, reimbursement or direct payment, use Concur - payment type Awards, Gifts, Prizes; sub-type Retirement (Employee).

General Guidelines for Purchasing Gift Cards and Certificates

To qualify as a non-cash award, gift cards and certificates must be non-negotiable and redeemable as tangible personal property.

A gift card or certificate is considered tangible if it is:

  • Inscribed with the recipient's name
  • Not transferable
  • Not redeemable for cash
  • Not redeemable for payment on the balance of the recipient's account with the merchant
  • Not redeemable for services, such as a facial, spa treatment, golf lessons, etc.
  • Not purchased for less than $10 (Under California law, cards with a value less than $10 are redeemable for cash)
    • Note: If a gift card cannot be inscribed with the recipient's name, the department should inform the employee that the card is non-transferable. Having the name inscribed on the card is preferred as this provides the optimum documentation for meeting IRS guidelines.

When vendor requests payment using wire transfer, see how to request a wire.

You may not use a Department Order, Procurement Card, or Oracle to purchase gifts because these processes do not allow for approval by the appropriate person. There are no exceptions to this policy.

Purchasing gifts is not allowed for occasions that are personal in nature, such as:

  • Employee birthdays
  • Weddings
  • Anniversaries
  • Nonretirement farewell gatherings
  • Administrative Professionals' Day (Secretary's Day)

Award Limits and Taxability

Gift Limit
Award or Gift Per-Person Limit* Tax Treatment if Limit Exceeded
Employee Recognition (including Spot Awards) $75 A
Employee Recognition: 1-month parking permit $250 C, D
Employee Recognition: 1-month transit pass $130 C, D
Length of Service $400 B
Retirement $400 B
Sympathy Gift — Tangible Personal Property $75 A
Sympathy Gift — Cash Contribution $200 E
Prizes and Other Gifts $75 A

Notes:

  1. If the cost (or value) of the award or gift exceeds $75, the entire amount is taxable.
  2. If the cost (or value) of a length-of-service or retirement award exceeds $400, only the amount in excess of $400 is taxable to the employee.
  3. If the cost (or value) of a monthly parking permit or transit pass award exceeds the per-person limit, only the amount in excess of the limit is taxable.
  4. The award amounts conform to the monthly pretax transportation limits that are indexed for inflation by the IRS.
  5. Since a contribution made to a charity must be made in the university's name, there is no tax consequence if the limit is exceeded.

*The per-person limits exclude incidental costs for engraving, packaging, insurance, sales tax, mailing, delivery, and gift wrapping that does not add substantial value to the gift.

Find answers, request services, or get help from our team at the UC San Diego Services & Support portal.
Notice: UCSD's non-cash award policy is derived from UC Policy and Regulations. Published policy is decisive as it has been adapted to UCSD's organization, delegation of authority, terminology, and chart of accounts.