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 Manual (ELM)
Exhibit 491.1 Service Recognition and Incentive Awards
[Revise the text of Exhibit 491.1 to read as follows:]
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[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.
[Revise the text of Exhibit 495.1 to read as follows:]
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[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.
[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.
[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.
[Revise Exhibit 497.1 to read as follows:]
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[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.
[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.)
[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.)
We will incorporate these revisions into the next online update of the ELM, which is available on the Postal Service PolicyNet website:
via USPS.com