Beware of IRS Guidelines During Gift-Giving Season
Ensure that the Grinch does not ruin your good intentions for employee recognition during this holiday season.
According to the Internal Revenue Service, all awards/gifts to employees of cash and cash equivalents
-- including gift certificates, gift cards, gift coupons, vouchers, and savings bonds in any amount
-- are subject to personal income tax for the recipient, meaning either the recipient or their employing department/entity must cover the associated taxes. Due to processing costs and additional financial implications for both the department and the recipient, the use of gift certificates and other cash equivalents for staff recognition is strongly discouraged at Duke.
In addition, non-monetary awards/gifts with value clearly in excess of $100 are subject to personal income tax as well. So, please be mindful of this threshold when selecting non-monetary awards/gifts for your team members.
Finally, please remember that Duke requires that all recognition awards/gifts be approved in advance by a dean, director or department head.
For more details about Duke's policy, including procedures for funding and
payment of gifts, please visit the Employee
Recognition web site.
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