Gift Certificates and Other Property

Gift certificates are considered a cash equivalent, and must be handled and accounted for in the same method required for petty cash.

Tax Reporting and Withholding

Distributed cash, gift certificates, and other property of $100.00 or above must be recorded as taxable income, which requires obtaining a Social Security Number and a permanent address on the form.

Non-resident aliens who receive taxable distributions of cash, gift certificates, or other property may be subject to 30% withholding for federal taxes, unless the recipient qualifies for a tax treaty. Please contact Matt Devick (294-0457) before distributing property to non-resident aliens, as your department's funds will be responsible for any required withholding.

For ISU Employees

If the employee has already received the property (gift card, prize, etc.), attach the original form to the expense transaction, such as the P-card purchase. If the value is $100 or more, then forward a copy of the Property Receipt form to either Matt Devick in the Office of Payroll, Benefits & Tax at 1560 Administrative Services Building or to Payroll via email at payroll@iastate.edu.

If you wish to make a cash payment to the employee for a prize or award that is related to their work, route the form to hr_delivery@iastate.edu to be entered into the payroll system as a one-time payment.