The enthusiasm regarding UNMC’s Thank ‘U’ Program was evident Tuesday morning.
Minutes after Human Resources Director John Russell announced changes to the program at a morning forum, the phones started ringing at the desks of Tony Huerta and Jim Wiegel, the personnel techs in Human Resources who are on the front line of the program.
Program notables
A few changes will take place to the UNMC Thank ‘U’ Program when medallion redemption resumes on Aug. 15. The changes and other notable items regarding the Thank ‘U’ Program include:
- Those redeeming medallions will have the choice of redeeming for non-taxable items or taxable items. The non-taxable items include UNMC merchandise, including mugs, a mixing glass, letter opener, pen/pencil set with opener, crystal cube keepsake, post-it holder and gumball machine, as well as a Blockbuster movie card. Employees will be taxed on their paychecks for redeemed items that have a cash value, such as a $25 certificate to Target or a $5 certificate to Don & Millies.
- Employees will be able to redeem 20 medallions per year. Each employee’s count for 2005 will begin on Aug. 15, thus, no medallions redeemed before the moratorium will be counted toward the total of 20. In each subsequent year, each employee’s count will begin on Jan. 1 and end on Dec. 31.
- No items redeemed before the moratorium will be taxed.
- Medallions will be redeemed only at Human Resources. HR personnel will exchange the medallions for certificates for specific items, including those that can be picked up at the UNMC bookstore.
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There was just one problem: The program’s medallions can’t be exchanged for merchandise and gift certificates until Aug. 15, when the moratorium on redeeming the medallions will end. The moratorium was put into effect earlier this year after the Internal Revenue Service (IRS) clarified that any cash value certificate provided to an employee was subject to taxation and withholding.
“We’re thrilled that employees will have the opportunity to redeem medallions again,” said John Russell, executive director of Human Resources. “While this moratorium was an inconvenience for many of us, ultimately we will have a better Thank ‘U’ Program because of this process.”
Under the revamped program, employees now have the opportunity to redeem medallions for UNMC merchandise, including mugs, a mixing glass, letter opener, gum ball machine and other items. Upon redemption, these items would not be taxed as income to employees. Those items that have a cash value – such as a $5 certificate to Panera Bread or a $15 certificate to Olive Garden – will be taxed as income on the paycheck of the employee who redeems them.
Taxing these gift certificates was prompted by a recent clarification by the Internal Revenue Service (IRS), which indicated that any cash value certificate provided to employees is subject to taxation and withholding.
“Previously, certificates valued under $50 were exempted through a ‘di minimus’ rule. Basically, those items were too small to worry about,” Russell said. “With the new clarification, we will have to tax those certificates that have a cash value.”