Expenditure Policy - 5.6 Employee Gifts

5.6  Employee Gifts

IRS publication 17 provides very specific guidance regarding taxable income of gifts given to employees which are paid with institutional funds. Due to the complexity of this regulation, as well as the cost to regulate policy, Messiah College has taken the position that no employee gifts (both tangible and monetary, including gift cards) can be purchased with institutional funds except for gifts given as part of a Human Resource sponsored College wide function, or as a part of a President or Vice President approved plan for employee recognition. Examples include, but are not limited to:

  • Human Resource Employee Christmas Luncheon giveaway
  • Human Resource Employee Length of Service Program
  • Retirement or farewell events for employees with more than 5 years of service
  • Performance Recognition Awards
  • Human Resource Employee Picnics
  • Memorial flowers upon the death of an employee or an employee’s immediate family member
  • Vice President approved functions for employee recognition or development

Gifts presented to employees may be subject to applicable Federal, State, and Local taxes. Human Resources and Senior Administration must report all employee gifts to the payroll department for processing (see Employee Gifts & Awards Payroll Reporting Form).