Employee Recognition Award Procedure

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Procuring Non-monetary Awards University Policy 4335: Employee Awards and Recognition Program, provides the mechanism for Deans and Vice Presidents to establish recognition programs within their units. These programs must be pre-approved by Personnel Services, for more information contact Kirk Wehner (540) 231-7773. The Policy provides for both monetary and non-monetary awards. Non-monetary awards include: plaques, trophies, framed certificates, pens and desk items, cups and mugs, and personal items of clothing such as caps, shirts, sweatshirts, and pins and timepieces. Flowers may also be purchased as a non-monetary award.
   
Tax Considerations If an approved program calls for the presentation of non-monetary awards, care must be taken to ensure that the non-monetary award is considered to be de minimis, or of sufficiently low value as to not be considered taxable. The University Controller is responsible for determining if a non-monetary award is taxable or not (de minimis). Gift certificates are considered cash equivalents and are taxable in any amount. Generally speaking, if the value of the award item (other than a gift certificate) is limited to $75.00 or less, it will be considered de minimis. The $75.00 taxation threshold does not include shipping or handling costs that may apply. Exceptions are engraved plaques and flowers which are considered to have no market value and are not taxable to the recipient. However, framed artwork does have market value and may be taxable. Framed artwork that has a small engraved presentation placard is not considered to be an engraved plaque. Please address all questions regarding taxability to the Payroll Manager in the Controllers Office.
   
Payment Options

     

    Recognition award items must be procured by use of following procedures:

    • Assuming the value is less than $2,000, the P-card can be used if the vendor does not take a PO otherwise make the purchase via HokieMart.
    • Cite Account Code 1413Q (Employee Awards Program) HokieMart non-catalog form or in the P-card log and assign all charges to this account to identify it as a non-monetary award purchase.
    • Cite the Award Program Reference Number (assigned by Personnel Services) on the HokieMart order or P-card retained records.

        Note: Awards funded with Virginia Tech Foundation funds must be initially charged to the department operating funds and reimbursed from VTF funds.
   
Storage and Custody If the Department elects to procure items in advance and store them for presentation on a periodic basis, special care must be taken to account for the items. A custodian should be designated to be responsible for the safekeeping of the award items. A log should be maintained to indicate when and to whom the items were awarded. It is not in keeping with the spirit and intent of the Awards and Recognition Policy to use these items for any purpose other than the approved plan. For example, non-monetary award items are not to be presented to visitors or to be used as prizes.

 

Last Updated: September 16, 2011