Let’s start with a standard disclaimer.
This is not to be construed as tax advice nor guidance for your specific circumstances. Please consult your tax advisor.
Incentives and taxes:
For non-employees you can take advantage of the Business Gift Tax exclusion which is $25 per year (last set in 1986 I believe). Amounts above that are taxable
to the recipient but not reportable by your institution until you have paid $600 or more in aggregate per calendar year (1099M Other). The value is calculated as the fair market value of whatever is given,
not your acquisition cost. Cash is obviously dollar for dollar.
It is possible that some prizes may not be able to be valued in whole or part and that can be documented. Examples may be get a picture with xyz, or dinner with
xyz. Only the valued portion would be reportable.
For employees – beyond the Business Gift Tax exclusion, its W-2 taxable through payroll. You may have an administrative burden exception in certain cases such
as a departmental lunch (also can be excluded in other ways). Gift cards are treated as cash and at face value.
Get W-9s for the Chromebooks.
Bob Swanson, CPA
Controller
Bowling Green State University
1851 N. Research Drive
Bowling Green, Ohio 43403
xxxxxx@bgsu.edu
w 419.372.8597
Good morning all,
I have an additional question in regards to offering incentives for vaccines. Is your institution withholding taxes for any incentives provided? For example, if you held a drawing for Chromebooks open for students who get vaccinated, has
your institution taxed students for those prizes?
Thanks!
Senior Pre-Award Sponsored Projects Officer
Office of Research Development and Administration
Eastern Michigan University
Ypsilanti, Michigan 48197
For those institutions that are offering incentives to students, or students, faculty and staff, are you using HEERF
institutional funds to provide these incentives? The question has arose if you can also provide the incentive if the student provides proof of vaccination but it was BEFORE the announcement of the incentive.
Can you tell me how you have implemented it if you are providing the incentive and using HEERF funding? Thanks.
Tonja Moore
Associate Vice President for Research
Office of Research and Economic Development
Florida International University
11200 SW 8th St.
MARC 430
Miami, FL 33199
(305) 348-3049 (office)
(305) 348-4117 (fax)
xxxxxx@fiu.edu
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