403.6 Employee Recognition Awards
Portland State University may establish and maintain performance award programs, with awards payable, up to established limits, from Education and General Funds. Service awards may be provided only from non-institutional funding sources (e.g., Foundation). Other awards payable from sources other than Education and General funds, such as Foundations or donor gifts available for such purposes, are not limited in their amount by this policy.
PSU seeks to ensure that awards for employee and team performance, and for service be made in amounts commensurate with other awards made from state agencies' General fund allocations.
DEFINITIONS
Performance awards: Cash or non-cash awards that recognize and promote extraordinary employee and/or team achievements to reward and reinforce desired, demonstrated behavior, achievement, and results. Performance awards do not include defined merit pay programs that may be a part of bargaining unit compensation plans, or salary performance incentives that may be included in individual employment contracts.
Service awards: Cash or non-cash awards to honor length of service or retirement.
RESPONSIBILITIES
| High level roles | High level responsibilities |
|---|---|
| Payroll Manager | Maintains HRIS Banner database, as well as the payroll rules and tables. |
| Internal Audit Division | Gathers responses for the State on audit findings and sub-recipient monitoring, plus other requests, as necessary. |
| Controller's Department | Provides guidance to departments |
| Award Administrator or Committee | Identifies award-eligible events, programs, and circumstances, recipients, and timing of awards. |
| Recipient of Awards | Accepts awards, signs related contracts (some must be reviewed by the Department of Justice). |
| Administrator of Awards Programs | Reviews expenditures, prepares invoices, collects funds from sponsors, identifies and allocates funds received. |
RECOGNITION PROGRAM COMPONENTS
The determination of awards should be done and include the following considerations to determine the nature of employee performance and service recognition programs:
- program objectives
- eligibility criteria
- plan administration procedures
- award types:
- cash or
- non-cash
- communication to employees
COMPLIANCE
The PSU president or designee shall ensure that the program is in compliance with all applicable rules, policies, and regulations. He/she shall ensure the program can be financed within the limits of the institution's available operating budget and, if applicable, it’s legislatively approved program.
RECORDS RETENTION
PSU shall prepare and retain records of cash awards and non-cash awards, summary lists of recipients, and program changes made by the institution as they occur.
AWARD TYPES, FREQUENCY, AND PAYROLL PROCESSING
Performance Awards Paid from Education and General Funds
Cash and non-cash performance awards paid from Education and General Funds of the institution are generally one-time awards, and shall not exceed $50 in a calendar year (maximum of $50 per individual if award is a team award).
- Cash and non-cash award amounts shall not be included in the employee's base salary.
- Employee(s) may receive a cash or a non-cash award, or a combination of the two.
- Cash awards are processed through the payroll system and are subject to taxation as income.
Performance Awards Paid from Other than Education and General Funds
Cash and non-cash performance awards paid from other than Education and General funds of the institution are not limited to a specific dollar amount.
- Cash and non-cash awards shall not be included in the employee's base salary.
- Employee(s) may receive a cash or a non-cash award, or a combination of the two.
- Cash awards are processed through the payroll system and are subject to taxation as income.
- Non-cash awards up to $400 in a calendar year per employee are non-taxable to the employee.
Service Awards not permitted to be paid from Education and General Funds
Cash and non-cash service awards may not be paid from Education and General Funds.
Service Awards Paid from Other than Education and General Funds
Cash and non-cash service awards paid from other than Education and General funds are not limited to a specific dollar amount.
- Cash and non-cash awards may not be included in the employee's base salary.
- Employee(s) may receive a cash or a non-cash award, or a combination of the two.
- Cash awards are processed through the payroll system and are subject to taxation as income.
- Non-cash awards valued under $400 are excluded from taxation. The $400 limitation is an annual exemption for a single employee each calendar year.
Related Items
- Receptions or events at which service or performance awards are presented are not processed as awards to the recipient(s). Education and General funds may not be used to provide refreshments or facilities for voluntary social events, either off-site or on-site, such as retirement celebrations.
- Gift certificates are cash equivalents and subject to the provisions for cash awards.
EMPLOYEE RECOGNITION AWARDS SUMMARY CHART
| Award Type | Funding Source | Limits | Tax Reporting |
|---|---|---|---|
| Employee or team achievement awards (performance awards) | Budgeted Operations - Funds beginning with 00 or 01. | Allowable. Shall not exceed $50 per person and generally are one-time awards. | Cash and cash equivalents including gift certificates are taxable through the payroll system. Non-cash awards are not taxable (not to exceed $50). |
| Funds other than Budgeted Operations. | Allowable. Not limited to a specific dollar amount. | Cash and cash equivalents including gift certificates are taxable through the payroll system. | |
| Retirement or length of service awards (service awards) | Budgeted Operations - Funds beginning with 00 or 01. | Not allowable. | N/A |
| Funds other than Budgeted Operations. | Allowable. Not limited to a specific dollar amount. | Cash and cash equivalents including gift certificates are taxable through the payroll system.Non-cash awards up to $400 are not taxable. | |
| Refreshments for voluntary social events such as retirement celebrations | Budgeted Operations- Funds beginning with 00 or 01. | Not allowable. | N/A |
| Funds other than Budgeted Operations. | Allowable. | N/A |