Budget and Analysis: Other Tax Topics
Awards, Gifts and Prizes for Employees or Students
Prizes and Awards Policies and Procedures - This document describes the policy on giving awards, gifts, and sponsoring contests with prizes. It also outlines the reporting process. Since prizes, gifts, and awards are covered by IRS regulations, there is a procedure to track the event and determine whether the recipient has an income tax liability, or whether NMT has a tax reporting responsibility. Certain events are treated as employee fringe benefits, and result in compensation for the recipient. Note: A common transaction covered under this policy is the purchase of shirts with logo's.
Students are not handled under the employee fringe benefit regulations, even if they have campus employment, when the event is related to their student role at Tech - not their campus job. This process also applies to awards given to third parties who are not employees or students of NMT.
Prize and Award tracking spreadsheet -This spreadsheet is the tracking mechanism. Instructions are included in the spreadsheet. Complete it according to the instructions and email an electronic version of the sheet to the Federal Tax Compliance manager no later than 3 days after the event.
This document cites the IRS code for employee fringe benefits, service awards, safety awards, and student scholarships : IRS code on fringe benefits, prizes, awards, gifts
Contact the NMT Compliance Analyst (x5122) with questions on how to report the awards or prizes given to employees, students, or third parties.
Other fringe benefits with income tax impact
Employee Educational Tuition Waiver Procedure