Employee recognition FAQs
Last updated: July 21, 2025
The Revised Code of Washington chapter 41.60 outlines the rules on employee incentive programs, including that recognition awards should not exceed $200 per award per year. See more on recognition events, the rule of light refreshments, and food approvals on the food policy page.
As a state agency, we at UW have the authority to recognize employees, either individually or as a group under RCW 41.60.150. All costs associated with the event (refreshments, gift, space reservation, etc.) may not exceed $200. The available budget may vary from department to department.
It varies. One way is to estimate how many recognition events you anticipate per year, and what type and value you designate for the award. Some departments have awards that range from inexpensive items up to $75 for exceptional accomplishments. Remember that recognition can be meaningful without spending a lot of money.
Can I purchase food and get reimbursed?Unless you have a discretionary budget, you must request pre-approval for the expenditure using the food form (UoW1798). With pre-approval, food may be provided for state employees for the purposes of recognition. You can be reimbursed for food purchases, as stated in the food policy (it must be for special business meetings, training, or recognition).
Grant budgets vary in expenditures they allow. Some grants may allow recognition expenses; others may not. See the Cost Allocation policy and contact your budget coordinator or email Grant and Contract Accounting for more information.
Any cash-converting gift certificate or cash award is considered pay and needs to be taxed accordingly. Send an email to pr-tax@uw.edu and include the award recipient’s name, UW Employee ID number, and gift certificate amount. You can also send questions on the department’s reporting responsibility for cash or cash-converting gift certificates to pr-tax@uw.edu. A best practice is that all recognition awards be recorded regardless of value.
Cash and cash-equivalent awards are taxable, regardless of the amount. Send your tax questions to taxofc@uw.edu.
Yes, you may use your own funding for recognition activities. Personal spending should not be the only source of departmental-wide recognition activities and remember it’s best to tie the recognition gift or reward to a specific behavior or a key goal in your department.
Retirement gifts are held to the same standard as recognition gifts. See RCW 41.60.150. Recognition funding can be used to pay for the event that recognizes the employee’s length of service and contributions to the department. Retirement gifts can be purchased with individual contributions from colleagues and peers.