Gift Card Policy

I. Scope

This policy applies to all university employees.

II. Policy Statement

Gift card usage must be approved by the Controller’s Office by completing the Gift Card Request Form prior to purchasing the gift cards.

This Policy applies to all University trustees, officers, faculty, employees and students and is limited to gift cards funded by the University or where payments will be made by the University from some external funding source (a grant or research contract). The portions of the policy and procedures related to tax reporting are also applicable to distributions of any gifts and awards of non-cash tangible items with a fair market value greater than $50 if funded by the University.

For employees, the value of gifts and gift cards is considered compensation subject to federal, state and employment tax withholding, and reporting on Form W-2.

III. Reason for the Policy

As cash-equivalent instruments, such as gift cards are governed by tax rules and internal control requirements. These rules and requirements must be followed and communicated to those involved before purchase or distribution of any gift cards. When gift cards are distributed, they must be distributed in accordance with the guidelines set forth in the procedures associated with this policy.

University faculty and staff occasionally want to use gift cards to recognize individuals. Use of gift cards should only be considered when no other option is viable. The preferred method of recognizing individuals is by issuing payment either by Payroll direct deposit for employees or by paper check through Accounts Payable for non-employees.

IV. Related Information

IRS Publication 15-B, IRS Publication 525, Income Tax Regulation § 1.132-6, IRS Instructions for Form 1099-MISC