Effective December 1, 2010, the Postal Service™ added two new suppliers of gift certificates for use as recognition awards. Below is updated information for managers to use in implementing the program. Additional information can be found in the Employee and Labor Relations Manual (ELM) 470, Recognition and Awards; in Management Instruction FM-640-2010-1, Postal Service Tax-Reporting Responsibilities — Event Mementos; and on the Compensation website:
http://blue.usps.gov/humanresources/professional
portal/directreports/compensation/pay_awardsandrecog_main.shtml?
There are three approved suppliers that managers are authorized to use for purchasing gift certificate awards valued at $25 or more: 1) Corporate Rewards; 2) GiftCertificates.com; and 3) Intelispend. Gift certificates are considered off-catalog purchases. This means that you must obtain purchase approval through eBuy2, but purchase gift certificates from the vendors’ dedicated Postal Service websites (listed here) using a VISA SmartPay credit card for payment. You can find the vendors’ addresses, contract numbers, and other information on their websites. To stay within your local buy limits, multiple orders can be placed against these contracts/agreements and are not considered split purchases as long as they do not exceed the ordering limits in the governing contract/agreement (HBK AS-709, Purchase Card Policies and Procedures for Local Buying, section 121).
Gift certificates purchased from the authorized vendors are generally limited to denominations of $25, $50, $100, $150, $250, and $500. However, certificates of different denominations may be purchased with the agreement of the supplier. In addition, managers may purchase gift certificates valued at less than $25 from other sources, adhering to all Postal Service and local purchasing rules and regulations.
Corporate Rewards
www.corporaterewards.com/usps
Contract Number 2 WSMISC-10-B-0072
The Universal Gift Card Reward can be redeemed for 1) popular retailer and restaurant gift cards; 2) the Corporate Rewards Preferences Card (powered by AMEX); 3) Print-on-Demand Gift Cards right from your browser; or 4) direct online shopping at over 200 web retailers.
GiftCertificates.com
http://www.giftcertificates.com/usps
Contract Number 2 WSMISC-10-B-0069
The SuperCertificate reward offers gift cards to national and local merchants, including the most popular stores, theaters, and restaurants. Employees can choose gift cards from hundreds of local, national, and online merchants.
Intelispend
https://uspsrewards.intelispend.com/
Contract Number 2 WSMISC-10-B-0073
The Persona MAX Card is exclusively accepted at 190+ carefully chosen retail, travel, and entertainment establishments. Available in standard denominations, the Persona MAX Card delivers the prestige, stability, and security of the American Express brand.
The Internal Revenue Service (IRS) requires that all gift certificate awards, regardless of their value, be reported as income. The Postal Service eAwards application is the only authorized method for this reporting. Report gift certificate awards in eAwards under the appropriate award type, depending on the employee category and reason for the award. (Note: Not all employees are eligible to receive gift certificate awards. Please refer to ELM 470 to verify a recipient’s eligibility prior to presenting the award. The eAwards application will not accept reporting for employees ineligible to receive an award.)
Gift certificate awards should be reported in the same pay period they are issued for accounting purposes, but must be reported in the same calendar year that they are issued for proper income tax reporting. The eAwards system normally stops accepting new award entries for fiscal year-end processing in late September, and for calendar year-end processing in mid December. Awards not approved by the approver designated in eAwards by the close of business on these cut-off dates will be held for processing in either the next fiscal year or calendar year. The fiscal year cut-off date is announced in the annual Postal Bulletin article regarding fiscal year-end activity. The calendar year cut-off will be posted on the eAwards message board.
For career employees, the payroll system automatically calculates and pays tax assistance on gift certificate award amounts that equal or exceed $50. The additional tax liability is charged to the finance number indicated in eAwards at the time of award submission and approval. Normal payroll deductions will be withheld from the paycheck relevant to the pay period the award is entered in eAwards for gift certificate awards valued at less than $50 presented to career employees. Tax assistance is not provided for noncareer employees who receive gift certificate awards.
These instructions apply to all gift card purchases. Additional processes and controls, set by the officer of an organization, may also apply.
The Postal Service has entered into an exclusive contract with Intelispend for the purchase of American Express Gift Cheques to be used as cash equivalent awards for employee recognition. Intelispend is the only authorized source of cash equivalent awards; no gift checks, debit cards, or other cash equivalent awards may be purchased from any other vendor. American Express Gift Cheques can be purchased only through eBuy2; they may not be purchased directly from the American Express website or any other source.
American Express Gift Cheques are available only in $100 denominations. You can issue American Express Gift Cheques purchased under this contract only as cash equivalent recognition awards; you cannot use them for any other purpose.
The Internal Revenue Service (IRS) requires that all cash equivalent awards, regardless of their value, be reported as income. The Postal Service eAwards application is the only authorized method for reporting this income. Report cash equivalent awards in eAwards under the appropriate award type, depending on the employee category and reason for the award. (Note: Not all employees are eligible to receive cash equivalent awards, so verify a recipient’s eligibility prior to presenting the award. The eAwards application will not accept reporting for employees ineligible to receive an award.)
Cash equivalent awards should be reported in the same pay period they are issued for accounting purposes, but must be reported in the same calendar year that they are issued for proper income tax reporting. The eAwards system normally stops accepting new award entries for fiscal year-end processing in late September, and calendar year-end processing in mid December. Awards not approved by the approver designated in eAwards before these cut-off dates are held for processing in either the next fiscal or calendar year. The payroll system automatically calculates and pays tax assistance on cash equivalent awards. The additional tax liability is charged to the finance number indicated in eAwards at the time of award submission and approval.
These instructions apply to all cash equivalent purchases. Additional processes and controls, set by the officer of an organization, may also apply.
Noncash tangible merchandise items may be used for recognition awards. These items include apparel, tickets for a specific sporting or entertainment event, plaques, electronic devices, and other personal property. Certificates that can be exchanged for event tickets at nonspecific dates and times are considered gift certificates and must always be reported in eAwards, regardless of value.
You can procure noncash tangible merchandise items locally in accordance with established Postal Service and local purchasing rules and regulations.
Noncash tangible merchandise items are considered income by the IRS, but items valued at less than $50 do not require reporting. If the value of merchandise items presented for recognition is equal to or exceeds $50, report the award in eAwards under the appropriate award type depending on the reason for the award and the employee category. If an employee receives multiple noncash tangible items valued at less than $50 during the calendar year, these items are to be tracked and if the total amount of these items meets or exceeds $50 in value, the entire amount must be reported as income. Personalizing a merchandise item, such as apparel or a plaque, does not exclude it from IRS reporting requirements; personalized items must be reported in eAwards if the value meets or exceeds the $50 threshold. Report noncash tangible awards in eAwards under the appropriate award type, depending on the employee category and reason for the award. (Note: Not all employees are eligible to receive noncash tangible merchandise items as awards, so verify a recipient’s eligibility prior to presenting the award. The eAwards application will not accept reporting for employees ineligible to receive an award.)
Nonncash tangible awards should be reported in the same pay period they are issued for accounting purposes, but must be reported in the same calendar year that they are issued for proper income tax reporting. The eAwards system normally stops accepting new award entries for fiscal year-end processing in late September, and calendar year-end processing in mid December. Awards not approved by the approver designated in eAwards before these cut-off dates will be held for processing in either the next fiscal or calendar year. The payroll system automatically calculates and pays tax assistance on cash equivalent awards. The additional tax liability is charged to the finance number indicated in eAwards at the time of award submission and approval.
These instructions apply to all noncash tangible award purchases. Additional processes and controls, set by the officer of an organization, may also apply.
Specific Postal Service rules and IRS regulations exist for awards and gifts presented at onsite and offsite meetings, training sessions, conferences, etc. See Management Instruction FM-640-2010, Postal Service Tax-Reporting Responsibilities — Event Mementos, for more information regarding gifts given to Postal Service employees by the Postal Service, and also by outside sources in this context.
— Compensation,
Human Resources, 12-2-10
