Post date: Dec 7, 2017 8:48:03 PM

Dear Departments All,

Please review the following information carefully as it includes an important process change and could result in reimbursement request rejections or unexpected tax implications.

The University has announced that P-cards may no longer be used to purchase gift cards and these purchases will now be blocked on the P-Card. The IRS considers all gift cards and cash equivalents subject to tax regardless of the amount of the gift card (e.g. a $1 gift card is subject to taxation).

As a result, gift cards must be purchased through FinanceLink. Also, gift cards should NOT be purchased directly and then reimbursed through AP Workflow. The Global Payment Card Policy has been updated with this change (see attached).

Please see the details below for (1) holiday gifts or staff/visitor gifts and (2) research payments to human subjects as part of an approved research program:

1. Holiday gifts or staff/visitor gifts:

a. All holiday events and gifts should be reasonable within the context of NYU’s Affordability Initiative.

b. All gift cards are subject to tax (even $1), however most reasonably priced goods are not. According to the IRS, “a gift card to buy a turkey is taxable, but an actual turkey is not.”

c. The use of Departmental operating funds (Fund 10) for communal events, such as a Departmental holiday party, is allowed as many members of the FAS community benefit from the event.

d. Gifts for individuals, such as a holiday gift to service staff, are best managed via a collection within the Department (not to be reimbursed by NYU funds). Departmental operating funds (Fund 10) should typically not be used to purchase gifts. Departmental discretionary funds (Fund 20) may be used as approved by the Chair/Director to purchase goods (such as a box of chocolates), but not gift cards. Departments without discretionary funds should contact their fiscal analyst in advance of any gift purchase to discuss details.

e. Overall, given the complex set of rules around gifts, please contact your Departmental fiscal analyst before purchasing a gift for a student, staff member, faculty member or visitor. Depending on the circumstances, gifts are not always allowed so it is extremely important to review the request with your fiscal analyst in advance. There are established processes for student awards, staff/faculty additional compensation, and visitor honorarium that do not require gifts.

f. If the Department would still like to issue a gift card, for example a gift card for a visitor, please see the process below:

i. Email FinanceLink with a description of the gift card request (total cards needed and total dollar amount). Please request a ticket number for your future reference.

ii. Use “NYUBox” or interoffice mail to send a list of gift card recipients, addresses, and tax ID #s (typically social security numbers) to Michael Wallace, Manager, Accounts Payable Operations. Never email social security numbers.

iii. Gift cards will then be available for pick up from 105 East 17th street 4th floor.

iv. Accounts Payable will then document the gift card purchases and any income tax implications to specific individuals.

g. An honorarium through i-Buy is an alternative to a gift card for a visitor.

h. Student awards and prizes should be processed through Accounts Payable using the Student Awards & Prizes form (EXP3000S).

2. Research payments to human subjects:

a. Gift cards and/or Petty Cash funds may still be used for research payments to human subjects in accordance with NYU policy.

b. ‘Non-refillable’ Bank Debit Cards (MasterCard) are available through AP (see attached instructions).

c. ‘Refillable’ or ‘fillable-on-a-delay’ Bank Debit Cards (Visa) are available through the a pilot program with the Bursar. This is a new pilot program for more flexible prepaid cards. These cards may be anonymous or non-anonymous and may be refilled or filled-on-a-delay. If your Department is interested in this pilot, please contact your FAS Fiscal Analyst.

If you have any questions or concerns, please do not hesitate to contact me. This communication has been posted to our Fiscal Announcement page.

Thank you,

Joe

Joseph C. Wright

Senior Director, Fiscal Affairs

Faculty of Arts & Science, NYU

5 Washington Square North

Garden Level, Room B03

New York, New York 10003

212.998.7565 (Office)