mines gifts, prizes, & awards procedure

Gifts, including cash cards, gift certificates, gift coupons and property

Definitions

  • Cash Card- Cards that the bearer can use like a debit card with any vendor who accepts debit/credit payment types.
  • Cash Equivalent- Just like or equal to cash. Cash Cards, Gift Cards, Gift Certificates, and Gift Coupons are considered cash equivalent.
  • De Minimis– Containing insignificant value and exempt from tax implications. The following are not considered de minimis regardless of their amount and are not exempt from tax regulations; Cash Cards, Gift Cards, Gift Certificates, and Gift Coupons.
  • Gift- Something given voluntarily without receiving anything in return, often to commemorate a significant event, birthday, birth of a child, etc. 
  • Gift Cards, Gift Certificates, Gift Coupons- Cards or vouchers specific to particular vendors that the bearer can use to redeem for goods/merchandise. These cards are only redeemable at the merchant listed on the card/voucher, i.e. Wal-Mart, Target, etc
  • Honorarium- something of value given freely in exchange for something of unequal value received, i.e. give a $25 gift card to a speaker at commencement.

 

Mines Gift Procedure
Purpose
This document establishes policies and procedures associated with gifts, including cash cards, gift certificates, gift coupons and property. The implementation of these procedures ensures that appropriate controls are in place to protect the University’s assets and to ensure applicable taxes are withheld when necessary.
Policy
It is the policy of Mines to comply with all tax regulations and ensure all the University assets are safeguarded against misappropriation.
Procedures
If a department wishes to purchase a gift, regardless of its form, i.e. plaque vs. gift card, they are encouraged to contact the General Accounting office at co-accounting@mines.edu for guidance and advice.
Tangible items valued above $100 are considered taxable income and MAPS will add the value of the gift to any employee W-2 form or non-employee 1099-MISC forms.
If the recipient is an employee of Mines and the gift is a gift card, certificate, coupon or cash card, MAPS will add the amount of the gift card to the recipients gross pay, taxes will be withheld, and the respective amounts will be included on their W-2. Non-employee gift card recipients will receive a form 1099-MISC from the University when all cash equivalent payments in one calendar year equal or exceed $600.00.
If the recipient is a Mines student, the  Financial Aid office will be notified to determine whether there is an impact to the student’s financial aid awards.
All gift cards must be purchased by an authorized user*. The department may submit a request through Team Dynamix (Voucher Request for cash request or Mines Gift Card & Merchandise Request).
Gifts Excluded from Tax Implications

If the gift is for an employee and it is not cash or a cash equivalent then it may be considered a de minimis fringe benefit and specifically excluded from tax, which reduces the amount of information that must be supplied to MAPS. If you can answer yes to all the questions below please contact General Accounting at co-accounting@mines.edu.

  • The gift was tangible in nature and was not cash, nor a gift card, gift certificate, or the like
  • Market value is $100.00 or less
  • Is given on an infrequent basis (i.e. less than 3 times in a calendar year)
Anonymous Research subjects

Gift cards are considered by the IRS to be the equivalent of cash.

Tracking of research subject payments is required for IRS 1099 reporting purposes when each confidential/anonymous study subject is receiving more than $50 in gift cards and/or non-cash items over $100.  

If a confidential/anonymous study subject is receiving more than $50 in gift cards and/or non-cash items over $100, the department must record information on recipients per IRB specifications. The department will be responsible for retaining this information for their records, subject to audit, for 3 years. The department is responsible for providing recipients with Tax Notice, letting them know gift cards and/or non-cash items that are received in exchange for being a participant in a clinical trial, protocol, or survey, are taxable income. 

Tracking by the department is not required for an anonymous study subject receiving $50 or less in gift cards, or a non-cash item less than $100. The participant must, however, be given a Tax Notice, letting them know gift cards and/or non-cash items that are received in exchange for being a participant in a clinical trial, protocol, or survey, are taxable income

Mines Gift Card & Merchandise Request
Tax Notice

Contact

General Accounting
1600 Jackson Street
Suite 370
Golden, CO 80401
co-accounting@mines.edu 

Sue Borup
Associate Controller

Nicole Horton
Operations Manager – Controller’s Office