Effective April 2, 2015, the Postal Service™ is revising the Employee and Labor Relations Manual (ELM) subchapter 490 to update information relevant to awards for noncareer employees. Revisions have also been made to clarify the reporting of awards for both Contest and Safety awards.
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Employee and Labor Relations Manuals (ELM)
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4 Pay Administration
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490 Recognition and Awards
491 Overview
491.1 Policy and Scope
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Exhibit 491.1 Service Recognition and Incentive Awards
[Revise the text of Exhibit 491.1 to read as follows:]
Category |
Category |
ELM Reference |
Employees Eligible |
Others Eligible |
Description |
Certificate of Appreciation |
Certificate of Appreciation |
492 |
All |
Contractors and customers |
Noncash recognition. |
Service Awards |
Service Award Pin |
493.2 |
Career |
None |
Noncash recognition. |
Service Awards |
Service Award Certificates for Retirement and Posthumous Service Recognition |
493.3 |
Career |
None |
Noncash recognition. |
Informal Award |
Informal Award |
494 |
All |
Contractors |
Noncash tangible item, less than $75 in value. |
Formal Awards |
Spot Award |
495.2 |
Non-Inspection Service, career employees |
None |
Cash, cash equivalent, gift certificate, or noncash tangible item, up to $3,000 in value.* |
Formal Awards |
Noncareer Gift Certificate |
495.3 |
Noncareer |
None |
Gift certificate valued from $1 to $100. |
Formal Awards |
Quality Step Increase |
495.4 |
Career bargaining unit on step schedule |
None |
Change in base pay. |
Special Awards |
Team Award |
496.2 |
Nonbargaining Non-Inspection Service career employees |
None |
Cash, cash equivalent, or noncash tangible item, from $50 to $2,000 in value. |
Special Awards |
Vice President Award |
496.3 |
Career |
None |
Cash, up to $5,000 per award. |
Special Awards |
Postmaster General Award |
496.4 |
Career |
None |
Cash, up to $12,500 per award. |
Special Awards |
ELT Award |
496.5 |
Career |
None |
Cash, up to $10,000 per award. |
Special Awards |
Benjamin Franklin Award |
496.6 |
Designated by the Postmaster General |
None |
Noncash recognition. |
Other Awards |
Contest Award |
497.2 |
All |
None |
Noncash items, up to $500 in value (see 497.23 and 626.1). |
Other Awards |
Safety Award |
497.3 |
Career |
None |
Noncash items, up to $500 in value (see 843). |
Inspection Service Awards |
Informal Award |
498.2 |
Career Inspection Service |
None |
Cash equivalent, gift certificate, or noncash tangible item, up to $3,000 in value. |
Inspection Service Awards |
Nonexecutive Award |
498.3 |
Career Inspection Service |
None |
Cash award up to $5,000. |
* See 491.3 for descriptions of cash equivalent, gift certificate, and noncash tangible awards. |
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491.3 Awards
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491.34 Gift Certificates
[Revise the text of 491.34b and c to read as follows:]
b. The eAwards system withholds appropriate payroll deductions from the recipient’s paycheck relevant to the pay period the gift certificate is reported in eAwards.
c. Gift certificates valued at $50 or more presented to all employees are grossed up by eAwards so that the Postal Service assumes the tax liability for the recipient. The additional tax liability is charged to the finance number indicated when reported in eAwards.
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495 Formal Awards
495.1 Overview
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Exhibit 495.1 Formal Awards
[Revise the text of Exhibit 495.1 to read as follows:]
Type |
Who Is Eligible |
Description |
Approval Authority |
Basis |
Limit |
Spot cash |
Non-Inspection Service, career employees |
Check issued by Accounting Services. |
Manager or Postmaster EAS-22 or higher |
Recognizes sustained high- quality performance that is likely to continue or a specific action or accomplishment beyond normal work requirements. |
From $50 to $3,000 per award. Limit is $3,000 per employee per fiscal year. |
Spot Cash Equivalent |
Non-Inspection Service, career employees |
Cash equivalent item purchased locally from authorized vendor. |
Manager or Postmaster EAS-22 or higher |
Recognizes sustained high-quality performance that is likely to continue or a specific action or accomplishment beyond normal work requirements. |
From $100 to $3,000 per award. Limit is $3,000 per employee per fiscal year. |
Spot Noncash Tangible |
Non-Inspection Service, career employees |
Merchandise item, clothing, etc., purchased locally. |
Manager or Postmaster EAS-22 or higher |
Recognizes sustained high-quality performance that is likely to continue or a specific action or accomplishment beyond normal work requirements. |
From $75 to $3,000 per award. Limit is $3,000 per employee per fiscal year. |
Spot Gift Certificate |
Non-Inspection Service, career employees |
Gift card or certificate purchased locally from an authorized vendor. |
Manager or Postmaster EAS-22 or higher |
Recognizes sustained high-quality performance that is likely to continue or a specific action or accomplishment beyond normal work requirements. |
From $1 to $3,000 per award. Limit is $3,000 per employee per fiscal year. |
Noncareer Gift Certificate |
Noncareer employees |
Gift card or certificate purchased locally from an authorized vendor. |
Manager or Postmaster EAS-22 or higher |
Recognizes sustained high-quality performance that is likely to continue or a specific action or accomplishment beyond normal work requirements. |
From $1 to $100 per award. Limit is $500 per employee per fiscal year. |
Quality Step Increase (QSI) |
Career bargaining unit employees |
Change in base pay. |
See 495.4 |
See 495.4 |
Step increase (see 495.4). |
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495.2 Spot Award
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495.28 Processing
[Revise the third paragraph of 495.28 to read as follows:]
***Noncash tangible awards, valued at $75 or more, and all cash equivalent and gift certificate awards must be reported in eAwards as income received so that (a) appropriate payroll deductions can be made from the recipient’s normal pay, and (b) the award amount may be grossed up, if necessary. The reporting of these items in eAwards should occur in the same pay period the award is presented to the recipient. Reporting must take place in the same calendar year to avoid tax reporting discrepancies.
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495.32 Description
[Revise the text of 495.32 to read as follows:]
A Noncareer Gift Certificate Award consists of a gift certificate not greater than $100 in value purchased locally in accordance with Postal Service and local purchasing rules and regulations. Eligible employees may receive up to $500 in gift certificate awards in a fiscal year.
The Noncareer Gift Certificate Award, regardless of dollar value, is considered taxable income. Noncareer Gift Certificates valued at $50 or more are grossed up for tax purposes. (See 491.34 for more information on the tax impact of awards and grossing up for tax purposes.)
A Noncareer Gift Certificate Award may be presented along with a letter of appreciation on official Postal Service letterhead in an official service award folder.
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495.38 Processing
[Revise the second paragraph of 495.38 to read as follows:]
***All Noncareer Gift Certificate Awards are reported in eAwards as income received so that the appropriate payroll deductions can be made from the recipient’s pay. The reporting of these items in eAwards should occur in the same pay period the award is presented to the recipient. Reporting must take place in the same calendar year to avoid tax reporting discrepancies.
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497 Other Awards
497.1 Overview
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Exhibit 497.1 Other Awards
[Revise Exhibit 497.1 to read as follows:]
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497.23 Eligibility
[Revise the 2nd sentence of 497.23 to read as follows:]
***However, noncareer employees are limited to noncash tangible awards valued at less than $75 and/or noncareer gift certificates valued at $100 or less.
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497.25 Processing
[Revise the text of 497.25 to read as follows:]
Noncash tangible items valued at $75 or more must be reported in eAwards as a Contest Award. All gift certificates, regardless of value, must be reported in eAwards using the appropriate Gift Certificate award. (See 491.3 for more information on noncash tangible and gift certificate awards.)
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497.35 Processing
[Revise the text of 497.35 to read as follows:]
Noncash tangible items valued at $75 or more must be reported in eAwards as a Safety Award. All gift certificates, regardless of value, must be reported in eAwards using the appropriate Gift Certificate award. (See 491.3 for information on noncash tangible and gift certificate awards.)
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We will incorporate these revisions into the next online update of the ELM, which is available on the Postal Service PolicyNet website:
n Go to http://blue.usps.gov.
n In the left-hand column under “Essential Links”, click PolicyNet.
n Click Manuals.
The direct URL for the Postal Service PolicyNet website is http://blue.usps.gov/cpim.
— Compensation and Benefits,
Human Resources, 4-2-15
