Gift cards, gift certificates or other monetary awards above $75 (seventy-five dollars) are considered taxable income to the recipient. An expense or reimbursement for the purchase of any of these requires the name/s of the person receiving, their Seattle U ID, the purpose of the gift and the amount of the gift received.
Plaques, trophies, and tangible items, etc., are examples of non-monetary awards. Payment of or reimbursement for a non-monetary award requires the name of the person receiving the gift, the purpose of the gift and the value of the gift received. If the non-monetary award is in excess of $75, it will be considered taxable income to the recipient and the Controller’s Office requires the recipient’s Seattle U ID number or a completed W-9.
The University will pay or reimburse the cost of non-monetary awards to a retiree within the following limitations:
|
Length of Service |
Maximum Amount |
|
10 to 20 years of service |
$300 |
|
Over 20 years of service |
$400 |
To be eligible for a retirement gift, the retiree must have been employed at least 10 years at the date of retirement and the gift must be given at a meaningful presentation.
The University will pay or reimburse the cost of non-monetary awards within the following limitations:
|
Length of Service |
Maximum Amount |
|
5 to 10 years of service |
$100 |
|
11 to 20 years of service |
$150 |
|
Over 20 years of service |
$300 |
Retirement and farewell gifts qualify as length-of-service awards under IRS regulations. Therefore, the gifts are not reportable as taxable income to the recipient. To qualify as a non-taxable the award cannot be monetary (i.e, cash, cash card, or gift certificate) and must be given at a meaningful presentation.