We are pleased to share an update regarding the taxation of gifts cards, raffle prizes and recognition awards under our recognition programs and activities. In response to recent changes in our recognition practices, the College will now be covering the related tax withholdings via a gross-up process. This allows us to comply with tax laws while allowing recipients of such awards to receive the face value of the award.

Recipients will notice a separate amount on their pay advice to account for the taxes paid on the employee’s behalf by the College.  Please review the images below by clicking on the image to enlarge it for some examples of the calculation of the tax and how it will be reflected on your paycheck.  This will also be included in the W-2 forms starting in 2020.

Supervisors/Department Chairs and anyone providing an employee with a recognition item or gift card, purchased with College funds, must inform recognition@amherst.edu for processing.  Please do not hesitate to contact the OHR at hr@amherst.edu or x2372 with any questions you may have.

Gross Up Calculation Example for Non-Exempt:

(click image to enlarge)

Example of Gross Up Calculations - Non Exempt

Gross Up Calculation Example for Exempt:

(click image to enlarge)

  Example of Gross Up Calculations - Exempt