How do I expense the purchase of gifts for employees and/or non-employees?

Employee gifts should either be charged to Employee Award Non-Taxable (if $100.00 or less*) or Employee Award Taxable (if over $100.00*). You must select each employee that received a gift under the Recipient section in Workday Expenses. If the expense owner did not receive one of the gifts, be sure that their name is not included in the list of Recipients.

• *Gift limits do not include reasonable incidental costs that do not add substantial value to the gift, such as engraving, packaging, insurance, sales tax, mailing, and the cost of gift-wrapping.  

• Sympathy flowers (i.e. for funerals, etc.) are not taxable at any amount. Please use the expense item Employee Award Non-Taxable for floral arrangements, food, and greeting cards given to express sympathy or get-well wishes regardless of the amount, even if the arrangement is over $100. The IRS considers flowers provided under special circumstances as a de minimis fringe benefit so they are therefore not taxable.

Gift cards are taxable at any amount. Please use the expense items Employee Award Taxable, Gift Card Non-Employee, or Human Subject Payments (whichever is appropriate) no matter the amount of the gift card.

Non-employee gifts (excluding gift cards) must be charged to the expense item Gifts Non-Employee and you must enter the information for each Recipient.

If you purchase gifts in one transaction for both employees and non-employees, you must enter the expenses on separate lines and use the receipt twice, once for each line. If you purchased gifts on your T&E card in one transaction for both employees and non-employees, select the expense item Split Transaction and itemize the amount spent to the correct expense items under the Itemization section.