Employee Recognition Certificates by csc11566

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									                              University Employee Recognition Awards

                             Nontaxable                                                                Taxable*
N/A                                                                             Cash
N/A                                                                             **Unrestricted gift certificates or gift cards of any
                                                                                value
**Occasional restricted coupon for specific item of                             Restricted coupon greater than $75
personal property of $75 or less
Occasional gift of personal property of $75 or less                             Any gift of personal property greater than $75 except
(such as pen or plaque)                                                         for length of service or safety awards of $400 or less
Occasional tickets to a theater or sporting event                               Season tickets to sporting or theatrical events,
                                                                                including University events
Discounts of 20% or less off sales price normally                               Discounts of greater than 20% off selling price
available to public on purchase of University goods                             normally available to customers on purchase of
and services                                                                    University goods and services
Occasional group meals or refreshments for employee                             N/A
recognition events
Length of service/retirement award of personal                                  Retirement or length of service award that exceeds
property with fair market value not exceeding $400,                             $400, is awarded for less than 5 years of work, or is
given in recognition of retirement with a minimum of                            not part of a meaningful presentation.
5 years of service, and awarded as part of a
meaningful presentation.
Safety achievement award of personal property with                              Safety achievement award that exceeds $400, recipient
fair market value not exceeding $400, given to                                  does not work in area where safety is an issue/concern,
recipient working in area where safety is an                                    or is not part of a meaningful presentation.
issue/concern, and awarded as part of a meaningful
presentation.
*To report a taxable award or prize, call the Human Resources Call Center at 612-625-2016.

** IRS guidance related to de minimis benefits:
Gift certificates or gift cards that are redeemable for general merchandise or can be used for a cash equivalent value are not de minimis benefits and
are taxable regardless of the value. A certificate, card or coupon that allows an employee to receive a specific item of personal property that is
minimal in value, provided infrequently, and is administratively impractical to account for may be excluded as a de minimis benefit, depending on
facts and circumstances.
                                                                       Examples:
   Nontaxable de minimis benefits:                                                  Taxable de minimis benefits:

         Coupon for specific merchandise from U of M Bookstore                          Gift card or certificate redeemable at a store selling a
          (such as ball cap, t-shirt, or pen set) occasionally provided in                significant variety of items such as Target, Macy’s, or Cub
          recognition of employee excellence. Example: Employee may                       Foods.
          make choice of color and size of t-shirt when redeeming
          coupon, but may not apply the cash value to purchase a more                    Prepaid gift card, such as American Express or Visa gift cards,
          expensive item, nor choose a less expensive item and receive                    that may be used at any retailer accepting debit cards.
          cash back.

         Coupon that can be redeemed only for choice of one type of
          item (at a specific business) occasionally provided to recognize
          birthday, holiday, special circumstances, or employee
          excellence. Example: employee receives a coupon for a free
          ice cream cone at a specific ice cream shop. The employee
          may choose the ice cream flavor for the cone, but may not
          apply the value of the coupon to purchase a more expensive
          item.
                                    Prepared by the University of Minnesota Tax Management Office – last updated 8-5-08.
                                For more information contact us at 612-624-1053, taxhelp@umn.edu, or visit http://tax.umn.edu

								
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