A "cash equivalent" is a gift card, gift certificate or similar item, redeemable with one or more merchants, and usually with a stated face value dollar amount. Cash equivalents given as compensation are always taxable to the recipient, regardless of amount (that is, the de minimis benefit rules can not apply to cash equivalents).
Cash equivalents do not include items of non-cash merchandise, if given infrequently (to that individual and in whole). While non-cash items given as compensation are also normally taxable, UC's Employee Reward, Recognition and Acknowledgement Policy dictates that employees and independent contractors may receive such infrequent non-cash items valued at $100 or less per calendar year on a non-taxable basis, as a de minimis benefit.
A gift certificate or coupon redeemable for a specific item at only one merchant (for example, a ham from HoneyBaked Ham) will not be considered a cash equivalent.
