Occasionally, employees, students or non-Davidson individuals may be given gifts or incentives in the form of cash, check, direct deposit, gift cards, or gift certificates. Such transfers are discretionary.
This policy informs employees of the college's tax treatment of gifts, gift certificates/cards, and awards.
The following is the official policy of Davidson College regarding the tax treatment of gifts and awards:
Gifts and awards, of any amount, made by cash, check, direct deposit, gift cards, and gift certificates are always taxable income to the recipient. Amounts received by employees (including student employees) will be reported on Form W-2; amounts received by non-employees will be reported on Form 1099, once the reporting threshhold is reached.
Specific to gift cards/gift certificates: names of the individuals receiving gift cards/certificates must be submitted along with the payment request so that Business Services may be in compliance with IRS reporting requirements.
All gifts of tangible items over $35 are considered taxable income to the recipient.
The controller/director of business services shall oversee this policy and review it at least once every two years, or upon relevant changes in the Internal Revenue Code. Changes to this policy shall be made in accordance with the college's Policy on Policies.
Last Reviewed: Summer 2010