What You Should Know
Most non-salary payments to faculty and staff are reimbursements for business and travel expenses incurred on behalf of the University, or are cash advances for expenses that will be incurred. Other non-payroll payments include awards and gifts.
Non-Payroll, Non-Travel Payments to Faculty & Staff
A Note About Taxes
Reimbursements that are submitted within 60 days of being incurred are normally not taxable. Reimbursements that are submitted more than 60 days after being incurred, and other types of non-payroll payments generally are taxable and will be reported either on IRS form 1099, W-2, or 1042-S.
For information about payments to foreign nationals (NRA), see Non-Student Foreign National Information (NRA).
Types of Non-Payroll Payments
All non-payroll payments must be compliant with our Business Expense Policy. Please refer to this policy to determine what constitutes an appropriate award or gift.
Awards are bestowed on the recipient to recognize past performance and achievement, based on established criteria. There is no restriction on the use of the award.
If you wish to nominate an employee for an award there are three programs to choose from: the President's Achievement Award, the Donald Griffin '23 Management Award, and the Tiger and Stripe Awards. Follow the appropriate steps to nominate an individual for the most appropriate award based on the award criteria. Awards of cash will appear in a faculty or staff members’ paycheck, are taxable pay, and will be reported on a W-2 or 1042-S.
A gift is something given as a present. It is not acceptable to give gifts of cash or cash equivalents, including gift cards or gift certificates. Gifts have no strings attached, can be used by the recipient in any way, and do not obligate the recipient to do anything in return.
In legal terms, a gift is a payment made with detached and disinterested generosity where there is no legal or implied obligation to pay on the part of the giver, or consideration on the part of the recipient.
Departments may give gifts to employees for various and appropriate reasons. The treatment and taxation of gifts can vary depending on the value of the gift and the tax status of the recipient. Gifts made in the context of employment are highly regulated as they are difficult to distinguish from taxable compensation.
See guidelines about gifts and appropriate gift amounts in the Business Expense Policy.