FMU Gift Card Policy.pdf

The document outlines guidelines for the purchase and distribution of gift cards/certificates using University funds to comply with IRS tax regulations. It states that gift cards are considered taxable income regardless of the face amount and should be reported if exceeding $600 per individual per year. Different rules apply for gift cards given to students and employees. Students may receive gift cards for certain purposes, but nonresident aliens require special tax withholding. Employees cannot receive gift cards using University funds. Procedures for purchasing gift cards include using a Purchase Requisition and completing a Gift Card Purchase Authorization Form. A Gift Card Disbursement Log must be maintained, and gift cards should be securely stored. Records related to gift card purchases should be retained for three years. For any questions, contact the Purchasing or Accounting Office.