Gift Cards and Certificates

For Human Participants in Research

When purchasing gift cards or certificates for human participants in research, contact the Shared Services Center to discuss purchasing options and consult Cornell's Institutional Review Board for Human Participants or Survey Research Institute. Principal Investigators or units are responsible for maintaining relevant payee information – normally sealed to preserve confidentiality – for possible audit or tax reporting, per University Policy 4.7, Retention of University Records. 

Gift Card and Certificates Reporting Process

If you buy gift cards or certificates of any amount for any person or group (including current and former students, current and former or retiring employees) or request to purchase them with an I Want document, the Shared Services Center will initiate the following process:

1. You will get an email from the Diligent One Platform (formerly HighBond). The email will come from Diligent One Platform <notifications@highbond.com>. It will have instructions on completing the process.
2. You will complete the following information about each card recipient: Recipient Name, Gift Card Amount, and Date Gift Card Given.
3. You will receive reminders until you have submitted all information and a confirmation message when you have completed the process.

You should inform the recipients that the gift card is taxable, ideally when you give them the card or beforehand. See below for information on how tax reporting affects each type of recipient.

Tax Reporting for Employees

Except for the following two instances, gift cards and certificates presented to employees and student employees will be taxable income. The tax will be deducted from their paycheck in a future pay period.

Employee Achievement Awards

Gifts of tangible personal property (e.g., Cornell merchandise such as clothing, mugs, etc.) given as an award for length of service or a safety achievement is excluded from taxable income, limited to a cost of up to $400 received during the year.

Human Resources - Appreciation Portal (Awardco)

Points given to employees through the Cornell Appreciation Portal (Awardco) are not considered taxable income to employees because they only confer the right to receive tangible personal property, and they are not redeemable or exchangeable for cash.

Tax Reporting for Non-Employees

The following information applies to all non-employees, including students who are not student employees.

For U.S. citizens and U.S. resident aliens, no IRS Form 1099 is generated unless all payments received by U.S. citizens or U.S. resident aliens exceed the reporting threshold of $600 annually.

For foreign nationals/nonresident aliens, IRS Form 1042-S is generated for all payments received and reported. Because the IRS-required 30% tax was not withheld, the unit will be charged the 30% tax, based upon the amount of the gift card or gift certificate provided.