Taxation of Employees’ Gifts, Prizes, and Awards

Policy 1123 from the Finance Division's Polices and Procedures Manual states that cash and non-cash items given to employees as gifts, prizes, and awards that are paid with University funds (including state funds, grant funds, contract funds, gift funds) are subject to federal and state income tax and The Federal Insurance Contributions Act (FICA) tax

Exclusions:
Non-cash items are not subject to tax if the item qualifies as a 'de minimis' fringe benefit, length-of-service award, or safety achievement award.