The University of Nebraska Medical Center has a policy and various programs established for the reward and recognition of employees with non-cash awards.
Goals
The program is designed to provide incentives to individuals and groups to maximize their contributions to UNMC and to enhance UNMC's ability to hire and retain qualified employees in competitive labor market conditions. This program allows the administrative units and/or departments flexibility in creating appropriate recognition and reward structures.
Funding
All UNMC recognition and reward programs are based on the availability of funds. Each unit or department funds its own rewards. However, the "Chancellor's Commendation Gold 'U' Award," the"Chancellor's Council Silver 'U' Award," Thank 'U' Reward" and Service Awards" are campus-wide awards and have central funding and selection processes.
Eligibility
All regular full-time and part-time staff whose overall performance is satisfactory or above should be given the same opportunity to be rewarded for the results of their work. The UNMC Non-Discrimination policy (#1016) should be considered in the recognition and reward selection. "Service Awards" are based solely on the number of years of employment in the University of Nebraska system and are given in 5-year increments for staff and 10 year increments for faculty.
Restrictions
There are no restrictions on the number or amount of rewards and recognition that an employee may receive.
Tax Issues
Non-cash rewards not exceeding $50.00 are generally excluded from an employee's taxable income. Gift certificates, other than those solely redeemable for merchandise or services, are taxable to the employee. Please contact the Payroll Office for questions regarding the tax impact to the recipient. Retirement, service achievement, or safety awards are excluded.
Approval Process
All personal property rewards should have the appropriate unit or departmental approval. A unit may determine who (and for what purpose) may recommend that employees be recognized or rewarded:
Other Recognition
There are several centrally funded campus-wide awards: the Chancellor's Commendation Gold 'U,' Award, Chancellor's Council Silver 'U' Award and Service Awards. The "Service Awards" are given for length of employment in the University system and administered by UNMC Human Resources, while the Gold 'U' is given to individuals or groups through an open nomination process and selection by a campus-wide representative committee. The Silver 'U' Awards are selected at the unit level, for recognition at a monthly meeting with representatives of other units.
Many units and departments currently have recognition and reward programs in place. Human Resources provides consultation to unit or department leaders in reviewing and enhancing current recognition and reward programs or designing and implementing new ones.
Recognition and Reward Options:
Non-Cash/Personal Property Rewards:
Some examples of non-cash rewards include:
Tickets to local performances (movie, theatre, sports events, etc.)
Gift certificates for specific merchandise, services, or food are not taxable, if less than $50.00. No cash should be received back by the employee. If this might occur, the gift certificate should be treated as a "cash" reward.
Computer accessories or software
Center for Healthy Living memberships
Professional development funds
Gifts
Pizza or other parties for workgroups
Logo T-shirts, sweatshirts, caps, mugs, etc.
Recognition:
Some ways to recognize employees might include:
Nomination for Chancellor's Commendation Gold 'U' Award or selection at the unit level for the Chancellor's Council Silver 'U' Award
Receipt of a Thank 'U' Reward (the UNMC community is encouraged to recognize each other for excellent service, special projects, and extraordinary work)
Recognition through the Community Service Award, Partnership Award, or Diversity Award
Special recognition for individuals or workgroups at a Unit or Department meeting
Letter of recognition and appreciation directly to employee
A plaque to a workgroup or individual for achievement or accomplishment
Recognition within the department or unit of years of service on the anniversary date or in conjunction with the campus-wide recognition of an employee's "milestone" of service, given in 5 year increments.
Unit or department administrators should consider the following elements in reward and recognition decisions:
The extent to which employees or groups of employees to be affected by the proposed plan are identifiable and separable in some manner from other employees, either by job activity, organizational element, or other appropriate and valid means
For group rewards, participants should have an identifiable contribution to the rewarded outcome
Recognition and rewards should be based on objective, measurable outcomes or achievements
Unit/Department Approvals and Records
Non-cash personal property gifts must be recorded by the administrative units. Administrative units must keep accurate records ready for review upon request for three years afterward for all non-cash personal property given in the unit, with the following information:
Employee name and social security number
Reason for the personal property/gift
Type of personal property/gift, with reference to Quick Check number or other Purchase Order, used to purchase gift certificates or personal property, or to one-time pay.
Quick checks or purchase orders must have the appropriate unit or department signatures. Administrative units may decide on other additional approvals needed for the recognition and reward.
Procedures for Issuing Awards
1. Obtain appropriate unit or department approval for the incentive awards.
2. For a gift of personal property:
a. The purchase requisition should list the cost of each gift, the employee's name and social security number;
b. Purchasing/Accounts Payable will notify the payroll department of all requisitions for purchases of employee gifts over $50.00. The payroll department will add this cost to the employee's gross wages. Income and social security taxes will be withheld and appropriate gross wages incremented. This will appear on the employee's check stub as earnings type "GFT - Gift Cert.
c. The Internal Revenue Service (IRS) has clarified that any cash value certificate provided to an employee is subject to taxation and withholding. Previously, certificates valued under $50.00 were exempted through a “di minimus” rule. With this clarification, those certificates that have a cash value will be taxed.
d. Departments that give cash value gift certificates to employees are required to contact the UNMC payroll no later than December 15, in the current calendar year, with the appropriate information, so that the value can be added and taxed appropriately on the employee’s paycheck.