HR

IRS regulations state that cash awards and gift certificates are a taxable fringe benefit to the employee and must be added to taxable wages. Cash, gift certificates, gift cards, or other cash equivalents which are given to employees as gifts or awards are all considered taxable fringe benefits. Amounts paid to employees as bonuses in addition to their usual compensation must also be added to taxable wages. 

Please note, that when it comes to cash awards or cash equivalent, there is NO de minimus amount per the IRS.

Complete either the Guiding Principles Cash Bonus Request (LCHR-46) or Non-Cash Bonus Award Form (LCHR-9) and send to Human Resources. The Payroll staff will add the value of the award/gift to the employee earnings on the next payroll cycle. The Payroll system will calculate the taxes due on the value of the award/gift. 

Longevity and Employee of the Month awards are distributed by the Human Resources department and the award information is given directly to Payroll to process for tax purposes. No form is necessary for this program.

To be Non-Taxable, an award/gift must be tangible personal property. However, the IRS has set dollar limits on the average cost of all such awards and gifts. So, if you have any questions on the tax liability of gifts and awards you would like to give to your employees, please contact the HR/Payroll Department.

Please contact your HR Generalist if you have questions about Guiding Principles Bonuses or Non-cash Awards.

RESOURCES

courthouse-offices

Human Resources Department

HOURS: Monday - Friday, 8:00am-4:30pm

200 West Oak, Suite 3200, Fort Collins, CO 80521
PO Box 1190, Fort Collins, CO 80522
PHONE: (970) 498-5970 | FAX: (970) 498-5980
Email Human Resources