Employee Handbook

B. Cash

1. Given to Employees (including students in an employment capacity)

   To request payment, please contact Human Resources with any questions. If a gift, award, or prize is given to an employee in the form of cash, the amount will be added to the employee’s W-2 as taxable income. To request payment, please contact Human Resources with any questions.

2. Given to Non-Employees (individuals, entities, and students in a non-employment capacity)

To request a cash payment for a non-employee, submit the Create Supplier Invoice Request task in Workday. The gift, award, or prize recipient will be recorded as the payee. Please also fill out a Gift, Award, or Prize Purchase form and upload the form with the corresponding p-card expense in Workday with any attached receipts when tangible gifts are purchased. If a cash gift, award, or prize is given in a non-employment capacity to an individual, entity, or student, the amount will be considered taxable income and will be added to the recipient’s 1099 form. If payment is requested per the Workday Supplier Invoice Request task and the appropriate documentation is not provided, the payment request will be returned to the requestor in Workday for further review.

C. Merchandise

1. Given to Employees (including students in an employment capacity)
   If an employee receives $2,000 or more in merchandise in any given calendar year from ACU, the fair value of the merchandise will be included in the employee’s W-2 as taxable income. To request reimbursement for gift related merchandise, please fill out a Gift, Award, or Prize Purchase form and send the forms to Accounts Payable with any attached receipts for review. The purpose of the gift, award, prize form is to ensure that ACU continues to follow IRS regulations by tracking 1099-MISC, box 3 related purchases.
2. Given to Non-Employees (individuals, entities, and students in a non-employment capacity)
   If an individual, entity, or student receives $2,000 or more in merchandise in any given calendar year from ACU, the total fair market value of the merchandise will be considered taxable income and added to the recipient’s 1099 form. To request reimbursement for gift related merchandise, please complete an expense report in Workday and fill out a Gift, Award, or Prize Purchase form and send the forms to Accounts Payable with any attached receipts. If a cash gift, award, or prize is given in a non-employment capacity to an individual, entity, or student, the amount will be considered taxable income and may be added to the recipient’s 1099. The purpose of the gift, award, prize form is to ensure that ACU continues to follow IRS regulations by recording 1099 related purchases. If the appropriate documentation is not provided, the corresponding Workday expense report or p-card transaction verification will be returned in Workday for review.

D. Gift Cards, Gift Certificates, & Store Credits

Gift cards, gift certificates, and store credits may not be purchased using ACU funds for anyone. These purchases are considered prohibited and are non-reimbursable with university funds.

E. Door Prizes or Other Random Drawings

Door prizes or other prizes given to anyone that are selected at random are considered taxable income to the recipient. Door prizes and random drawings are considered prizes and similar procedures apply, see Appropriate Uses of Gifts, Awards, and Prizes.

F. Gifts Given for Special Occasions

Gifts given to anyone for occasions such as employee birthdays, , student or employee graduation, Christmas, , going away, or any similar event are reimbursable up to $75 per recipient. To request reimbursement, please complete a Workday expense report if the expense was incurred out of pocket and a Gift, Award, or Prize Purchase form with any attached receipts. The Accounts Payable department will contact the recipient if a W-9 form is needed. Employees are to provide the gift recipients full name and email address on the gift, award, prize form for reference. Please note that wedding and birthday receptions are non-reimbursable and should not be expensed with university funds.

G. Higher Education Act

Due to regulations outlined in the Higher Education Act, ACU will not provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance. This includes a sum of money or something of value other than fixed salary or wages.

H. Payment of Services

Individuals should not be paid for services in the form of a gift, award, or prize. If an individual or entity is performing a service for ACU, they should be paid through Payroll as an employee or through Accounts Payable as an independent contractor. Please submit an Employee vs. Independent Contractor Worksheet if you are unsure of how an individual or entity should be paid.

I. Student Financial Assistance for Living Expenses

Due to ACU’s tax exempt status, a department cannot request payment through Accounts Payable or make direct payments for purchases such as groceries, rent, household bills, or other related living expenses for a student using department or current unrestricted funds. If a student is in need of emergency financial assistance for living expenses, please contact SOAR. The Student Financial Services office reviews scholarship information. Such taxable scholarships will be reported on the student’s 1098-T form, and the student will be responsible for reporting the amount on their 1040 form. International students receiving scholarships for living expenses will have a 14% tax applied to their student account per IRS regulations. These scholarships cannot, in any way, represent the payment for services.

N. Receptions

1. Retirement Receptions
   Expenses for a retirement reception for an employee that has been at ACU at least ten years and is at least 55 years of age may be reimbursed using ACU funds.
2. Christmas and Graduation ReceptionsExpenses relating to graduation and Christmas receptions may be reimbursed when it is a legitimate ACU-related function. Each department may only have one Christmas and one graduation reception per fiscal year.
3. Other Receptions

   Non work-related school or departmental luncheons, dinners, or parties/celebrations/reception expenses will not be reimbursed using ACU funds. Examples include weddings, baby showers, or other similar events. Occasional employee birthday receptions are allowable.