Human Resources Classified Staff
Policy and Procedures

UNIVERSITY-LEVEL RECOGNITION PROGRAMS

The University celebrates employee achievements at multiple events, typically in conjunction with Employee Recognition Week. At the Years of Service Awards event, employees who have contributed ten, fifteen, twenty, etc. years of service receive awards. Employees who have retired over the past year are recognized at the Annual Retirement Awards event. And, the Awards for Excellence event celebrates employees whose achievements have had an exceptional impact on a large portion of the University.

DEPARTMENTAL RECOGNITION PROGRAMS

Departmental, college, or division level employee recognition programs may include a variety of activities and awards, including both individual and group awards. Restrictions apply to some of the awards and are described below. These restrictions are primarily due to the University being a public employer and the need to ensure compliance with tax regulations. Departments are encouraged to contact Human Resources for assistance in developing departmental recognition programs with awards for classified staff employees and appointed personnel employees.

Service Awards

Departments may wish to complement University years of service awards with their own awards, such as awards for five years of University service or for years of service in their own department. To ensure fairness of such awards, years of service awards must only include non-taxable awards.

Achievement Awards

Employees whose exceptional achievements have had an impact primarily at the department level should be nominated for departmental achievement awards rather than University awards for excellence.

Taxable Achievement Awards--Any departmental programs that include achievement awards such as cash awards, cash value awards, or other awards that are taxable (including awards that are paid for by the University of Arizona Foundation) must meet the following standards:

1. Such awards must be for achievements over and above assigned job responsibilities. These awards shall not be solely for the performance of current job duties at the "exceeds" or "far exceeds" job requirements levels (that is, awards shall not be used in lieu of merit funding). See list of suggested departmental achievement awards criteria available from Human Resources.
2. Every employee within the department must have an equal opportunity to compete for these awards. For example, all classified staff employees within a department should be eligible to receive an award that is designated for classified staff employees.
3. To avoid the appearance of a conflict of interest, services or merchandise (or certificates for such) from vendors or other non-University businesses shall not be solicited or accepted as donations by departments for use as awards. Donations or purchases of services or merchandise from University departments for such awards are encouraged.
4. Such awards paid for by the University must NOT be funded from state appropriated or sponsored funds. Funding such awards from non-sponsored local auxiliary/overhead funds is authorized.
5. Certificates for such awards shall not be entitled "gift certificates," as state employees are not entitled to receive gifts. Suggested wording would be "award certificate."
6. Because such awards are viewed as taxable income, they must be processed through the payroll system using the Recognition Award Compensation Form. (See taxable awards procedures below for processing steps; these awards are not supplemental compensation as described in policy #316.0). Note: Awards paid for by the University of Arizona Foundation have different tax procedures and are not processed through the university payroll system.
7. Values for cash award shall not exceed $250 for department awards and $500 for college/division awards.
8. Programs that include taxable awards costing at least $50 each must be approved by Human Resources, prior to departments requesting nominations, to ensure awards are based on objective criteria and meet the above standards. This approval must be obtained when developing programs with such awards or when making changes in these programs. Departments with programs that include taxable awards costing $50 or less are still encouraged to have their programs reviewed by Human Resources.

Non-Taxable Achievement Awards --Programs with achievement awards that are exclusively non-taxable are not required to be approved by Human Resources. (Human Resources can provide a current list of approved non-taxable awards.) Such programs, however, must still meet the first five standards described in the taxable achievement awards section above, and departments are encouraged to have such programs reviewed by Human Resources.

Definitions

Cash Value Awards --Awards that can be used in lieu of cash to allow the employee to select products or services. Such awards might include a certificate for a free meal at a University dining services facility or for merchandise at a University bookstore.

Taxable/Non-Taxable Awards --Due to the complexity and changing nature of tax regulations and how they apply along with other constraints that affect the University as a public employer, Human Resources will maintain and update a list of approved taxable and non-taxable awards. This list will be based on the taxable and non-taxable award standards above and advice from the Tax Compliance section of the Financial Services Office. Suggestions from departments on additions or changes to this list are welcome.

PROCEDURES FOR DEPARTMENTAL TAXABLE AWARDS

Department

Develop an awards program. (Human Resources can provide program development assistance.) If the individual awards exceed $50 in net value, provide a description of the program to Human Resources using the Recognition Program Information and Review Sheet. (Sheet available from Human Resources, and may also be used for review of programs with awards of $50 or less.) Forward the description to Human Resources at least FIVE working days prior to desired award nomination start date.

Human Resources

Review program for objective criteria and adherence to award standards. Sign Recognition Program Information and Review Sheet and return sheet to department.

Department

Select award recipients. Complete Recognition Award Compensation Form for each recipient. Attach copy of award purchase invoice, if any, and forward to Human Resources at least TEN working days prior to desired date of award presentation.

Human Resources

Review Recognition Award Compensation Form and confirm department has Recognition Program Information and Review Sheet on file. Sign and process form.

IMPORTANT NOTE: IF DEPARTMENTS WISH TO GIVE CASH/CHECK AWARDS OF A SPECIFIC NET AMOUNT AFTER DEDUCTIONS, DEPARTMENTS SHOULD INDICATE THE NET AMOUNT ON THE RECOGNITION AWARD COMPENSATION FORM (PAYROLL WILL CALCULATE THE GROSS AMOUNT NEEDED TO FUND THE NET AMOUNT). IF DEPARTMENTS CHOOSE TO GIVE TAXABLE AWARDS OTHER THAN CASH/CHECKS (SUCH AS CASH VALUE AWARDS OR MERCHANDISE), THE RECIPIENT'S NET PAY WILL DECREASE SLIGHTLY ON THE CORRESPONDING PAYCHECK. THIS IS DUE TO AN INCREASE IN TAX WITHHOLDINGS AND OTHER DEDUCTIONS THAT OCCURS BECAUSE THE VALUE OF THE AWARD HAS THE EFFECT OF INCREASING THE RECIPIENT'S GROSS PAY. DEPARTMENTS SHOULD ADVISE THE RECIPIENT OF THIS EFFECT IN ADVANCE OR POSSIBLY FUND AS PART OF THE AWARD A MONETARY AWARD TO OFFSET ANY INCREASE IN DEDUCTIONS.