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 |
In order to protect the integrity of the university program, special care must be taken in the procurement of items intended to be presented as non-monetary awards. Contracts have been negotiated to provide a selection of items from the list of authorized items. These contracts offer discounts with specified vendors and will allow an item with a value that is higher than the purchase price to be obtained. A complete list and links, where available, is provided on the following section to assist in reviewing the options available. Recognition award items must be procured by use of following procedures:
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| 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. |
| Contract Sources | Non-monetary award contract sources (additional contract information can be found at this web site. Djr Enterprises, Inc. (Djr Print it! Stitch it!)
High Peak Sportswear Inc.
New River Engraving, Inc.
O.C. Tanner Recognition Co.
Virginia Tech Services, Inc. (University Bookstore) |
Last Updated: December 19, 2007