Written by Andrew Coats.
Employees who are given cash and non-cash items such as gifts, prizes and awards that are paid with university funds (i.e. state funds, grant funds, contract funds or gift funds) are subject to federal and state income tax and the Federal Insurance Contributions Act (FICA) tax.
Examples of taxable gifts include awards, such as the NC State University Awards for Excellence and retirement awards that have a cash prize of up to $250.
Any cash gift, as a check or a gift card is reportable as income and subject to tax reporting.
To learn more about recognizing employees or non-employees with gifts or awards, please review the following Controller’s Office resources:
- Taxation of Prizes and Awards
- Taxation of Gifts, Prizes and Awards guidelines and procedures
- NCSU Policy on Non-Salary Compensation
- Gift and Gift Card Template
The Finance Division’s Knowledge Base has many articles to help you address multiple tax questions.
For additional assistance about taxes, the University Tax Compliance page has more in-depth resources to help you get the answers you need. University Tax Compliance is part of the University Controller’s Office and is here to help you save money and be in compliance with federal, state and university rules and regulations. Reach out to University Tax Compliance via our email address should you need further assistance.