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Giving an Employee a Non-Cash Award

Vendor payment requests for non-cash employee awards are processed through Accounts Payable. If the award should be reported on the employee's W-2 the Payroll Office will also process a transaction to add the taxable amount of the award to the employee's payroll record. To know if a non-cash employee award will be reported on the employee's W-2 review the questions below.

  1. Is this an award for past achievement, that will be transferred to a charitable organization prior to the employee receiving the benefit?

    If yes, it may be non-taxable. Contact the Payroll Office for assistance.

  2. Is this an award that is of nominal value and provided infrequently (i.e. trophies, pens, plaques, etc.)?

    If yes, it may be non-taxable. Contact the Payroll Office for assistance.

  3. Is this an award for length of service or safety? (i.e. retirement plaques, etc.)?

    It is not taxable and should be processed through Business Center Accounts Payable process.

  4. All other employee non-cash awards are taxable. The purchase cost of these awards is processed through Accounts Payable and the taxable amount is processed through the Payroll system.

To Process A Non-Cash Award through the Payroll System

  1. Process payment through the Business Center Accounts Payable System.

  2. The Business Center will provide payroll with the following information

    • Employee SSN/ID and name
    • Name of Award that was given and amount
    • What index and activity code (if any) to be charged.
  3. The OSU Payroll Office will:

    • Enter the non-cash earn code, FAN, on the next regular pay run for the employee, using the index provided on the request form.
    • This will add the value of the award to the employee's taxable income, but will not issue additional pay to the employee.
    • This process will deduct the tax withholding relative to the award form the employee's pay and charge the index for the relative medicare and social security withholding.
  4. If you are funding the award on an FS index, you will need to request it through the OSU Foundation reimbursement system.