6.451.1 Policies, Authorities, Categories, and Approvals

Manual Transmittal

April 11, 2019

Purpose

(1) This transmits revised IRM 6.451.1, Employee Performance and Utilization - Awards and Recognition, which provides Servicewide awards and recognition policy, standards, requirements, procedures, and guidance.

Background

Title 5, United States Code (USC), Chapter 45 gives agencies the discretion to “pay a cash award to, and incur necessary expense for the honorary recognition of, an employee who:

  1. by his/her suggestion, invention, superior accomplishment, or other personal effort contributes to the efficiency, economy, or other improvement of government operations or achieves a significant reduction in paperwork; or

  2. performs a special act or service in the public interest regarding or related to his/her official employment.”

For employees in bargaining units (BUs) covered by negotiated agreements, appropriate negotiated agreement provisions relating to subjects in this section should also be reviewed. For BU employees, should any of these instructions conflict with a provision of a negotiated agreement, the agreement will prevail.

Material Changes

(1) This revised IRM incorporates the Program Scope and Objectives subsection as required by the Internal Management Documents (IMD) outlined in IRM 1.11.2, dated November 14, 2016.

(2) 6.451.1.1, Program Scope and Objectives added per mandatory requirement issued on July 22, 2016, by the Office of Servicewide Policy, Directives and Electronic Research (SPDER).

(3) 6.451.1.1.1, Background is new. It provides an overview of several significant changes since 2011, incorporated and replaced Interim Guidance governing the awards program.

(4) 6.451.1.3, Authorities has been renumbered to 6.451.1.1.2 and the content has been updated.

(5) 6.451.1.1.3, Roles and Responsibilities is new.

(6) 6.451.1.1.4, Program Management and Review is new.

(7) 6.451.1.1.5, Program Controls is new.

(8) 6.451.1.1.6, Definitions is new.

(9) 6.451.1.1.7, Related Resources is new.

(10) 6.451.1.2, Program Objectives and Components is new.

(11) 6.451.1.5, Documenting Awards has been renumbered to 6.451.1.3 and content has been updated.

(12) 6.451.1.6, Program Coverage has been renumbered to 6.451.1.4 and content has been updated.

(13) 6.451.1.7, Funding Awards has been renumbered to 6.451.1.5.

(14) 6.451.1.9, Performance Awards has been renumbered to 6.451.1.6 and the content has been updated.

(15) 6.451.1.6.1, Performance Awards Monetary Limitations is new.

(16) 6.451.1.6.2, Performance Awards Eligibility for Separated Employees is new.

(17) 6.451.1.7, Performance Awards Bargaining Unit is new.

(18) 6.451.1.8, Performance Awards Non-Bargaining Unit is new, incorporates and replaces Interim Guidance HCO-06-0815-0005.

(19) 6.451.1.8.1, Eligibility- NBU Performance Awards is new.

(20) 6.451.1.8.2, Award Structure - NBU Performance Awards is new.

(21) 6.451.1.8.3, Additional Factors - NBU Performance Awards is new.

(22) 6.451.1.8.4, Review Process - NBU Performance Awards is new.

(23) 6.451.1.9, IRS Payband System Employees is new.

(24) 6.451.1.21, Quality Step Increase has been renumbered to 6.451.1.10 and content has been updated.

(25) 6.451.1.10.1, QSI Eligibility is new.

(26) 6.451.1.10.2, QSI Nomination Processing Procedures is new.

(27) 6.451.1.10.3, QSI Additional Factors is new.

(28) 6.451.1.10.4, QSI During Temporary Promotions is new.

(29) 6.451.1.10.5, QSI Documentation and Review is new.

(30) 6.451.1.8, Restrictions on Retroactive Quality Step Increases, has been renumbered to 6.451.1.10.6.

(31) 6.451.1.10, Special Act or Service Awards, has been renamed Special Act/Manager Awards and renumbered to 6.451.1.11 and content has been updated.

(32) 6.451.1.11.1, Monetary Special Act Awards is new.

(33) 6.451.1.11.2, Monetary Manager Awards is new.

(34) 6.451.1.11.3, Time-Off Special Act and Time-Off Manager Awards is new.

(35) 6.451.1.14, Time-Off Awards-General Provisions, has been renumbered 6.451.1.12 content has been updated.

(36) 6.451.12.1, Scheduling and Taking Time-Off is new.

(37) 6.451.1.12, Bilingual Awards has been renumbered to 6.451.1.13 and content has been updated.

(38) 6.451.1.13.1, Bilingual Eligibility Bargaining Unit is new.

(39) 6.451.1.13.2, Bilingual Eligibility Non-Bargaining Unit is new.

(40) 6.451.1.13, Employee Suggestion Program has been renumbered to 6.451.1.14 and content has been updated.

(41) 6.451.1.15, IRS Employee Recognition Program content has been updated.

(42) 6.451.1.16, IRS Federal Career Service Recognition Program content has been updated.

(43) 6.451.1.17, Secretary of the Treasury Honor Awards Program content has been updated.

(44) 6.451.1.20, Externally Sponsored Awards has been renumbered 6.451.19 and content has been updated.

(45) 6.451.1.23, Travel Gainsharing Awards has been renumbered to 6.451.1.20.

(46) 6.451.1.24, Award Presentation Ceremonies has been renumbered to 6.451.1.21.

(47) 6.451.1.25, Pay and Tax Consideration has been renumbered to 6.451.1.22.

(48) 6.451.1.23, Misconduct and Tax Compliance Screenings is new.

(49) 6.451.1.23.1, Coverage is new.

(50) 6.451.1.23.2, Employee Misconduct and Tax Compliance Non-SES Policy is new.

(51) 6.451.1.23.3, Misconduct and Tax Compliance Screening is new.

(52) 6.451.1.23.4, Covered Awards, Recognition and Other Actions is new.

Effect on Other Documents

(1) This IRM supersedes IRM 6.451.1, Employee Performance and Utilization-Awards and Recognition, dated October 4, 2011.
(2) This IRM supersedes HCO-06-0516-0008, Interim Guidance on Misconduct Screening for Awards, Recognition and Other Actions (Non-SES), dated October 12, 2016.
(3) This IRM supersedes HCO-06-0815-0005, Interim Guidance on Non-Bargaining Unit (NBU) Performance Awards Policy, dated August 27, 2015.
(4) This IRM supersedes HCO-06-0516-0006, Interim Guidance on Quality Step Increase (QSI) Policy dated, June 14, 2016.
(5) This IRM supersedes HCO-06-0516-0007, Interim Guidance: IRS Policy for Time-Off Special Act and Manager Awards dated, August 12, 2016.

Audience

All Operating Divisions and Functions.

Effective Date

(04-11-2019)

Robin D. Bailey Jr.
IRS Human Capital Officer

Program Scope and Objectives

  1. Purpose: This IRM provides policy and guidance for the IRS Awards and Recognition Program. The objectives of the Program are to reward and retain competent and talented employees by appropriately recognizing their achievements and contributions to the Internal Revenue Service mission and to promote an organizational culture where managers recognize and appreciate their employees’ contributions and achievements. Awards and recognition programs shall be administered consistent with these objectives in an inclusive environment in which employees know they are treated with equity, fairness, dignity and respect. See the Servicewide Equity, Diversity, and Inclusion Strategic Plan for detailed information.

    As required, it is supplemented by Human Capital Office (HCO) interim guidance. This IRM must be read and interpreted in accordance with pertinent law, government-wide regulations, Department of the Treasury (Treasury)Human Capital Directives and Issuances, Comptroller General Decisions, and Office of Personnel Management (OPM) Guidance, as relevant. This IRM incorporates interim guidance listed below.

    1. Misconduct Screening for Awards, Recognition and Other Actions (Non-SES), dated October 12, 2016, previously found in HCO-06-0516-008.

    2. Non-Bargaining Unit (NBU) Performance Awards Policy, dated August 27, 2015, previously found in HCO-06-0815-0005.

    3. Quality Step Increase (QSI) Policy, dated June 14, 2016, previously found in HCO-06-0516-0006.

    4. IRS Policy for Time-Off Special Act and Manager Awards, dated August 12, 2016, previously found in HCO-06-0516-0007.

  2. Audience: Unless otherwise indicated, the policies, authorities, procedures, and instructions contained in this IRM apply to all operating divisions and functions. BU employees should review negotiated agreement provisions relating to subjects in this IRM. Should any of these instructions conflict with a provision in the negotiated agreement, the agreement prevails.

  3. Policy Owner: Human Capital Office (HCO), Director, Worklife, Benefits and Performance (WBP) Division.

  4. Program Owner: WBP, Awards, Compensation and Leave Policy (ACLP) Branch.

Background

  1. This IRM encompasses several significant changes since 2011 that have expanded the award recognition policy to include:

    1. IRS has been conducting misconduct screening for monetary awards and high-level, non-monetary recognition for the past several years. This screening has been expanded, and additional guidelines have been established based on Treasury policy and provisions of the Consolidated Appropriations Act, which prohibit the IRS from paying any type of bonus, award or recognition to employees or hiring former employees, without a program in place that takes into account conduct and federal tax compliance. Based on the requirements in this Act, the IRS is expanding screenings to include federal tax compliance reviews in addition to misconduct screenings. These reviews are conducted to protect the integrity of the Service in accordance with IRS procedures.

    2. This guidance describes NBU performance award process for non-supervisory NBU employees effective for performance awards based on Fiscal Year (FY) 2015 performance and beyond. This policy defines procedures to provide consistency in determining payment of non-supervisory NBU awards throughout the IRS.

    3. The Quality Step Increase Policy (QSI) has been revised to modify the calculations, eligibility requirements and processing of these awards annually rather than bi-weekly.

    4. Provisions to assign a value amount to time-off awards granted as Special Act and Manager Awards will no longer be charged to the business unit award or bonus budget.

    5. The option for business units to provide NBU Monetary Special Act and Manager Awards to NBU employees was revoked in 2013. This option is now only afforded to the business unit if the business unit elects to allocate a portion of their NBU performance budget (not to exceed 10% of the NBU performance budget) to fund these award types.

Authority

  1. Laws: Title 5, USC, Government Organization and Employees:

    1. Chapter 43--Performance Appraisal

    2. Chapter 45--Incentive Awards

    3. Chapter 53--Pay Rates and Systems

  2. Consolidated Appropriations Act: (Consolidated Appropriations Act, 2016. Public Law No: 114-113 (12/18/2015), Division E-Financial Services and General Government Appropriations Act, 2016, Title I - Department of the Treasury, Internal Revenue Service).

  3. Regulations: Title 5, Code of Federal Regulations (CFR):

  4. Internal Revenue Codes (IRC) 7804(a).

  5. Treasury Personnel Management Manual, Chapter 451, Incentive Awards Program, describes the Department of the Treasury-wide awards program.

  6. The IRS awards and recognition program is administered under authority delegated by the Department of the Treasury in Treasury Order 102-01, Delegation of Authority Concerning Personnel Management.

  7. Treasury Human Capital Issuance TN-15-006, dated December 15, 2014.

  8. Awards and recognition requirements of the National Agreement, Article 18 take precedence for BU employees, if they conflict with provisions of this chapter or supplemental guidance, except when the conflicting provisions are mandated by U. S. Office of Personnel Management government-wide rules or regulations or Treasury directives.

  9. National Performance Awards Agreement is the negotiated agreement between IRS and the National Treasury Employees Union (NTEU) that establishes policies and procedures for implementing a program to recognize and reward high employee performance.

  10. Authority to Approve Monetary and Time-Off Performance Awards, Performance Bonuses, Individual and Group Special Act Awards, Manager Awards, Bilingual Awards, Honorary Awards, Informal Recognition, and Quality Step Increases for IRS Employees are outlined in the Table of Delegate Authorities to Approve Awards.

    Note:

    All Award/Recognition actions submitted by the business unit approving official will be reviewed and final approved by the authorized official (the IRS Human Capital Officer or his/her designee). The action will be considered to be final approved with the signature of the Personnel Action Request (PAR) or appropriate form and once all budget, misconduct and tax compliance screenings are verified.

Roles and Responsibilities

  1. The Director, WBP Division is the executive responsible for this IRM and overall Servicewide policy for the Awards Programs.

  2. The WBP, ACLP Branch is responsible for developing and publishing content in this IRM.

  3. The WBP, Worklife, Recognition and Leave Sharing (WRLS) Branch administers the IRS Employee Recognition Program and Employee Suggestion Program.

  4. The Workforce Relations Division (WRD), Labor Relations and Employee Relations (LR/ER) Operations Office provides guidance and representation to managers in areas such as grievances, discipline, adverse and performance cases (misconduct screening), and contractual obligations with NTEU.

  5. The Payroll and Personnel Systems (P&PS) Division is responsible for providing systems, tools, and all related instructions to employees to accomplish the process required to initiate PARs for all awards.

Program Management and Review

  1. Program Reports and Effectiveness: This IRM provides policy guidance on award programs and processes. The WBP Division gauges effectiveness of the program based on feedback from customers and program owners about subjects contained in this IRM. During review and publishing of this IRM, sections are revised, added or deleted based in part on this process. WBP plays an integral role in program management, review and effectiveness by:

    1. Supporting P&PS processing of all PARs, Mass Update Module (MUM), Quality Step Increases (QSIs), employee-generated actions, retroactive actions, corrections and cancellations related to performance and discretionary awards.

    2. Supporting WRD to establish labor and employee relations policy on award subjects so they can provide related support and expertise to Service management, field and embedded labor/employee relations staff and all employees.

Program Controls

  1. The WBP Division develops and deploys policies, materials and programs to increase Servicewide awareness and understanding of the awards program. Additionally, WBP collaborates with other HCO organizations and Servicewide stakeholders to support education and outreach activities as they relate to BU and NBU Employee Performance Awards, Special Act Awards, Manager Awards, Bilingual Awards and QSI Awards.

  2. The following activities help ensure program success:

    1. Conducting annual policy reviews;

    2. Publishing educational articles such as Leaders’ Alerts, IRS Headlines and Frequently Asked Questions (FAQs);

    3. Maintaining accurate and up-to-date program websites; and

    4. Conducting compliance reviews.

  3. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibits funds to employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23 for details.

Definitions

  1. Performance Awards - Monetary award to recognize individual employee’s performance as reflected in the most recent rating of record.

  2. Time-Off Awards - Awards granted at management discretion to recognize individual employee’s performance based on the most recent rating of record in the form of time-off from duty, without charge to leave or loss of pay, in lieu of a monetary award. Time-Off Hours can be awarded for the following awards.

    1. Bilingual - (In-lieu of cash)

    2. Performance - (In-lieu of cash)

    3. Special Act

    4. Manager

  3. Quality Step Increases - Increases an eligible employees' rates of basic pay from one step of the grade to the next higher step of that grade.

  4. Special Act Awards - Discretionary awards granted for commendable individual employee or group achievements of a unique employment-related activity or service that contributes to the efficiency, effectiveness or economy of government operations.

  5. Manager Awards - Discretionary IRS Special Act award for more immediate recognition for commendable individual employee or group achievements relating to or related to official employment or otherwise in the public interest.

  6. Suggestion Awards - Based on the adoption of employee suggestions to improve the efficiency or effectiveness of government operations.

  7. Honorary Awards - Formally recognize significant employee contributions to the IRS mission, strategic goals, balanced measures, or other commendable accomplishments.

  8. Informal Recognition of Employee Accomplishments - Recognition tools used to recognize employee accomplishments and provide incentives for high performance and serve as a vehicle to increase employee engagement. Many of these tools are of little or no cost to the manager or the IRS and do not require complicated procedures.

  9. Public and Private Sector Awards Sponsored by External Organizations - Designed to improve government operations by motivating and rewarding employee excellence in the work force.

Related Resources

  1. Additional guidance regarding IRS recognition program procedures is available on the HCO Awards and Recognition website. The information supplements this chapter. To provide more detailed references, hyperlinks are included to supporting documents and additional information.

  2. IRS business units (See IRM 1.1.1, Organization and Staffing, IRS Mission and Organization Structure) may establish recognition policies, programs, and procedures and issue guidance that supplements the provisions of this chapter, but business units are encouraged to consult with the ACLP Branch staff as they develop unit-specific recognition programs. When proposed changes to any awards or recognition policy or program affects BU employees, the business unit should seek advice from the initiating office’s human capital or employee relations staff and/or the HCO, WRD before implementation.

  3. General information on federal award programs may be found at the OPM Rewarding website, which does not supplement this chapter. Unless required by OPM government-wide rules or regulations.

Program Objectives and Components

  1. Positive feedback is always welcomed by employees and is consistently cited by recognition professionals as an extremely powerful workforce motivator. The IRS awards and recognition program provides the means to assure employees that their contributions are valued and to recognize and award them based on merit, for commendable job performance, special acts or services, or other notable contributions to government operations. Employees may be recognized individually, or as part of a group or team.

  2. Recognition can take many forms ranging from a "Thank You!" for a specific accomplishment to monetary incentives or formal honors under an established awards program. Managers should utilize the form of recognition that is both appropriate to the situation and valued by their employees. Supervisors should consider the following:

    • Did my employees go out of their way to support their teammates or other colleagues?

    • Did my employees demonstrate the Service’s values and contribute to the mission and strategic plan?

    • Did my employees go above and beyond normal expectations?

    • Have I heard positive feedback from others about my employees’ performance?

  3. At management discretion, an award may be granted to an IRS employee based on:

    1. performance as reflected in the employee's most recent rating of record; or

    2. a special act or service in the public interest relating to or related to official employment; or

    3. a suggestion, invention, superior accomplishment, productivity gain, or other personal effort that contributes to the efficiency, economy, or other improvement of government operations or achieves a significant reduction in work.

Documenting Awards

  1. Monetary and time-off awards may be initiated, approved, certified, and authorized through HR Connect, IRS’ human resource service delivery program. The use of HR Connect meets all documentation requirements for performance related awards.

  2. Form 14776, Quality Step Increase (QSI) Nomination is required as documentation in the QSI process.

  3. Form 9127, Recommendation for Recognition is required as documentation in the Special Act and Manager Awards process.

  4. Standard Form (SF-50), Notification of Personnel Action are generated in the HR Connect system for all monetary and time-off awards.

Program Coverage

  1. Unless otherwise noted in this chapter, the provisions of this program are applicable to all IRS employees except:

    • Employees of the Office of Chief Counsel

    • Presidential Appointees

    • Members of the Senior Executive Service (SES)

    • SES-in-Waiting (SIW)

    • Critical Pay Executives

    • Schedule C Appointees

    • Executive and other high-level IRS officials

  2. Employees of other federal agencies may be granted awards for contributions that benefit the Service and meet its awards criteria.

  3. The IRS may not directly pay but may recommend a monetary award to the Department of Defense for a member of the armed forces for an adopted suggestion that benefits the Service and meets its suggestion award criteria. The Service does not have the authority to grant any other type of award to a member of the armed forces for contributions made during active duty with the armed forces.

  4. Former federal employees and their legal heirs or estates, if deceased, may be granted awards for contributions made during federal employment that benefited the Service and meet its awards criteria. This also applies to former members of the armed forces.

  5. Other persons and organizations not described in paragraphs IRM 6.451.1.4(1) through (4), including volunteers, employees of private contractors, and private organizations may not be granted awards under the authorities cited in paragraph IRM 6.451.1.1.2.

    • The prohibition regarding contract employees includes those who may work side-by-side with IRS employees as members of the same overall work teams. The pay, awards, and discipline of a contract employee is handled by his/her employer, the contractor, not the IRS.

    • These persons and organizations may be presented unframed Certificates of Recognition to recognize significant, non-routine, contributions to the Service such as volunteer service performed on behalf of IRS through activities such as the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

Funding Awards

  1. Monetary awards and necessary expenses for the recognition of employee contributions will be paid from the funds or appropriations available to the Service, consistent with applicable financial management controls and delegations of authority. See IRM 1.33.4, Strategic Planning, Budget and Performance Management Process, Financial Operating Guidelines, issued by the Chief Financial Officer (CFO), for budget execution guidance.

  2. When a monetary award is approved for an employee of another federal agency, arrangements should be made to transfer funds to the employing agency. If the administrative costs of transferring funds would exceed the amount of the award, the employing agency should absorb the award costs. For example, it would not be practical to transfer funds when an award is $200 or less. When another agency approves an award for an employee of the Service, arrangements should be made to transfer funds in the same manner. The Division Finance Officer should be contacted to coordinate the transfer of funds from the former agency. See 5 CFR 451.104, Awards for additional information.

Performance Awards

  1. Performance awards may be granted only to individual employees either as monetary or Time-Off Awards (TOAs). (See IRM 6.451.1.12, Time-Off Awards, for provisions applicable to TOAs.) When granted, these awards must be based on an employee's performance as reflected in the employee’s most recent rating of record, provided that the rating is at the "Fully Successful" or "Met" level or above.

  2. The employee’s officially approved rating of record provides sufficient basis and justification for granting a performance award. Programs for granting performance awards as designed and applied, must make meaningful distinctions based on levels of performance. This means that employees with higher ratings of record within the same awards grouping must receive larger performance awards than those with lower ratings of record. Under IRS policy, an employee who is granted a QSI is not eligible for a performance award for the same rating period.

    Note:

    Not all performance appraisals are ratings of record. See IRM 6.430.1, Performance Management.

  3. All employees are limited to one performance award annually.

  4. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

Performance Award Monetary Limitation

  1. Title 5 of the United States Code section 4505a(a) (2), Performance-based cash awards states that a monetary performance award shall not be more than 10% of the employee's annual rate of basic pay, which must include: any applicable locality payment under 5 CFR 531, Subpart F; special rate supplement under 5 CFR 530, Subpart C (special salary rate schedules); or similar payment or supplement under other legal authority. For an employee receiving a retained rate under 5 CFR 536, Subpart C (or similar authority, such as 5 CFR 359.705), the rate of basic pay is the maximum payable rate for the employee's grade or level, rather than the retained rate.

  2. As an exception to the 10% limitation, a performance award of not more than 20% of the employee's annual rate of basic pay may be approved by the Commissioner of Internal Revenue (Commissioner) for exceptional performance. Requests for exception to the 10% limitation for NBU employees covered by this chapter (see IRM 6.451.1.4 (1)) who are not compensated under the IRS Payband System should be forwarded to the business unit awards coordinator, who will notify the Director, WBP Division.

  3. Performance award/performance bonus certificates are provided electronically or printed and distributed by the manager of record via the self-service offering on the Human Capital website. For more information see the Self-Service Performance and Career Award Certificates.

Performance Award Eligibility for Separated Employees

  1. Employees who have left the Service may be eligible to receive a performance award for their final rating of record if they have at least 12 continuous months on IRS rolls during the fiscal year:

    • BU and NBU-Other employees on 6850-performance plans who meet the eligibility criteria are eligible for consideration to receive a performance award. The employee must have completed the appraisal period, received a rating of record for the current fiscal year and be on rolls in a NBU-Other position as of the last day of the last pay period that ends on or before June 30 preceding the awards payment date for the rating period being recognized.

    • Management officials on 12450-performance plans who meet the eligibility criteria are eligible for consideration to receive a performance award. The employee must have received a rating of record for the current fiscal year and be on rolls in a management official position on September 30 of the rating period being recognized.

Performance Awards - Bargaining Unit (BU)

  1. BU employees' performance award eligibility and amounts are determined in accordance with the National Agreement, the NPAA and other negotiated provisions. (See the Human Capital Office Bargaining Unit Performance Awards for program information).

  2. Under the National Agreement, Article 18, BU employees who perform work at a grade higher than specified in their official position descriptions during a rating period may be eligible for increased performance awards. Please see Human Capital Office-Bargaining Unit Performance Awards for information on eligibility requirements and procedures.

  3. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

Performance Awards - Non-Bargaining Unit (NBU)

  1. NBU employees who are not compensated under the IRS Payband System may be granted performance awards under the provisions of this chapter. This includes non-supervisory NBU management officials and NBU Other employees.

    1. Management Officials on 12450-Performance Plans -Ratings are based on commitments/responsibilities. Management shall review each "Exceeded" appraisal to determine eligibility for an award. This shall include a review of the overall performance and commitments, obstacles overcome to exceed, complexity of the commitment, and comparison to others’ performance.

    2. NBU Employees on 6850-Performance Plans (NBU Other) - Ratings are based on Critical Job Element score. A cut-off score will be established to determine the number of exceeds employees to be granted performance awards.

    Additional information can be found Human Capital Office - NBU Performance Awards.

  2. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

Eligibility - NBU Performance Awards

  1. The IRS will grant performance awards to NBU employees who are assigned "Outstanding" performance ratings of record.

  2. Employees who are assigned "Exceeds" or "Exceeds Fully Successful" performance ratings of record may be provided performance awards at management discretion:

    1. Management Officials on 12450-Performance Plans – Ratings are based on commitments/responsibilities. Management shall review each "Exceeded" appraisal to determine eligibility for an award. The assessment should include a review of the overall performance and commitments, obstacles overcome to exceed, complexity of the commitment, and comparison to other’s performance.

    2. NBU Employees on 6850-Performance Plans (NBU Other) - Ratings are based on Critical Job Element score. A cut-off score will be established to determine the number of exceeds employees to be granted performance awards.

  3. Performance Awards will not be provided for an employee with a "Fully Successful" or "Met" rating, except under extraordinary circumstances, and will require the approval of the business unit head of office.

  4. Employees must receive a rating of record for the current fiscal year.

  5. Employees must be on rolls for 12 continuous months in an NBU position as of:

    1. September 30th for management officials on a 12450-performance plan.

    2. The last day of the pay period on or before June 30 preceding the awards payment date for the rating period being recognized if rated on a 6850-performance plan.

  6. Eligibility requires the candidate be an IRS employee and assigned to a "permanent" NBU position. The word permanent refers to the position of record, not the appointment type. The requirement is based on the employee’s permanent position of record as recorded in the Treasury Integrated Management Information System (TIMIS), not a temporary assignment to another position, such as a detail or temporary promotion.

Award Structure - NBU Performance Awards

  1. A performance award is:

    1. Determined as a percentage of individual salary or share value (including locality pay) as of September 30 for management officials on a 12450-performance plan.

    2. Determined as a percentage of individual salary or share value (including locality pay) as of the last day of the pay period on or before June 30 for NBU-Other employees on a 6850-performance plan.

    3. "Outstanding" ratings will receive a mandatory award ranging between 1.0% to 2.2% of individual salary (including locality pay).

    4. At managements discretion for an employee with "Exceeds" or "Exceeds Fully Successful" rating.

    5. Not provided for an employee with a "Fully Successful" or "Met" rating, except under extraordinary circumstances, and will require the approval of the business unit head of office.

    6. The determination of the award amount and calculation method will be at the discretion of each business unit. All criteria used to determine the distribution of performance awards must be posted or made readily available if requested.

Additional Factors - NBU Performance Awards

  1. An employee is not eligible to receive a QSI and a performance award for the same rating period.

  2. If the Service determines the value for a performance award as a percentage of salary, the performance award must be based on the employee's rate of basic pay in accordance with 5 CFR 541.104(g).

  3. Performance awards must make meaningful distinctions based on levels of performance. This means employees with higher ratings of record must receive larger performance awards (either as a dollar amount or as a percentage of salary) than those with lower ratings of record.

  4. A performance award is a lump sum payment, which is not basic pay and is subject to applicable tax rules, such as withholding.

  5. Granting of QSIs for NBU-Other and management officials are at management’s discretion following the QSI Policy Guidance and must adhere to all funding levels set forth by the Chief Financial Office (CFO).

Review Process - NBU Performance Awards

  1. Annually, each business unit will review the awards pool to determine the eligibility for granting awards.

  2. Each business unit is responsible for establishing the number of "Exceeds" or "Exceeds Fully Successful " employees eligible to receive awards based on objective criteria. For management official 12450 employees, the determination will be made based on reviewing the complexity of their commitments. NBU-Other 6850 employees will be based on a cut-off score.

  3. Each business unit shall document all monetary and TOAs in compliance with OPM guidelines.

  4. Each business unit will identify an NBU awards/budget point-of-contact.

IRS Payband System Employees

  1. IR Positions are governed by the policies established under the IRS Payband System; however, the aspects of the NBU Awards will flow to IR employees. Employees under the IRS Payband System (Senior Managers (SM), Department Managers (DM), and Frontline Managers (FM)) are not eligible for performance awards; however, they may be eligible for performance bonuses. For additional information, see the Payband Resource Center.

  2. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

Quality Step Increases (QSI)

  1. A QSI is a faster than normal increase in an employee's rate of basic pay (includes locality or special rate) from one-step of an employee's General Schedule (GS) or General Scheduled Law Enforcement Officers (GL) grade to the next higher step of that grade. A QSI has the effect of moving an employee through the GS or GL pay range faster than by periodic step increases alone.

  2. 5 CFR 531.501-508 outlines minimum QSI eligibility requirements, which have been incorporated into the IRM 6.451.1.10.1, IRS Eligibility Criteria below.

  3. The purpose of a QSI is to provide appropriate incentives and recognition for excellence in performance. As with other types of recognition, QSI nominations and selections will be based on merit factors, with review of employees' significant accomplishments during the rating period. QSIs can provide long-term salary increases, and organizations must consider budgetary impact when deciding on the number of QSIs to approve each fiscal year. Additionally, the maximum number of QSIs that an agency may approve may be subject to limitations established by the Office of Management and Budget (OMB) and OPM.

  4. When granting QSIs, business units must use the annualized cost of the QSIs to ensure they remain within their spending allocations.

  5. IRS will coordinate and communicate the effective and processing dates of QSIs annually (similar to monetary award payment scheduling). QSIs will not be effective throughout the year as ratings of record are completed. Staggering the effective dates of QSIs does not provide an efficient means to ensure IRS stays within the QSI budget cap.

  6. The QSI program shall be administered in an inclusive environment in which employees are treated with equity, fairness, dignity and respect. See Office of Equity, Diversity & Inclusion for detailed information.

  7. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

QSI Eligibility

  1. All GS and GL employees described under IRS QSI Eligibility Criteria are covered.

  2. The IRS QSI eligibility criteria shall be based on official personnel records, performance appraisals approved by management and validly entered HR Connect/ePerformance, and other information available to management.

  3. In accordance with regulatory requirements, supervisors may recommend/nominate IRS employees for QSIs who meet eligibility requirements. To be eligible for a QSI, employees must:

    1. be below step 10 of their grade level,

    2. have been officially assigned a current "Outstanding" rating of record,

    3. have demonstrated sustained performance of outstanding quality,

    4. have not been granted a QSI within the preceding 52 consecutive calendar weeks and,

    5. occupy a "permanent position" .

    Note:

    An employee serving on a temporary appointment is not eligible for a QSI. "Permanent position" means a position filled by an employee whose appointment is not designated as temporary and does not have a definite time limitation of one year or less.

QSI Nominating Processing Procedures

  1. Supervisors may nominate employees for QSIs at their discretion in accordance with IRS QSI Eligibility Criteria in IRM 6.451.1.10.1 above and business unit timelines and procedures.

  2. Supervisors will submit nominations using QSI Nomination, Approval, Offer and ElectionForm 14776 and must include a justification regarding the outstanding accomplishments that warrant the granting of a QSI. The employee's evaluation must be included with the submission.

  3. Each business unit will ensure that all performance ratings are timely completed, approved, and validly entered into HR Connect/ePerformance within the deadlines described in the IRS Performance Management Policy (IRM 6.430) and the National Agreement.

    1. For BU and NBU-Other employees, business units must ensure that all appraisals are completed and in Rating Reviewed/Approved Status no later than June 30 of each year to ensure all QSI eligible employees are considered for nomination.

    2. For management officials and management/program analysts (for positions designated as confidential only), business units must ensure that all appraisals are completed and in Rating Reviewed/Approved Status no later than October 31 of each year to ensure all QSI eligible employees are considered for nomination.

  4. Each business unit will develop and issue nomination timelines and procedures to their supervisors to ensure QSI nominations and selections are timely completed. Business units will not develop any additional QSI nomination criteria.

  5. Each business unit may request a report of all employees who are currently assigned outstanding ratings from the IRS Human Resources Reporting Center (HRRC) for use in reviewing employees who may be nominated for a QSI.

  6. Each business unit will determine the approving official(s) for QSIs within their respective divisions.

  7. Business units may not exceed the QSI funding levels provided by the CFO.

  8. Once QSI selections are made, business units must ensure that misconduct and tax compliance screenings and/or review are completed before employees may be offered a QSI.

    1. HCO’s Workforce Relations Division (WRD) will provide each business unit QSI/Awards Coordinators with a listing of employees in their business unit that have misconduct violations or are non-tax compliant that prohibit them from receiving a QSI.

    2. Form 14776, (QSI Nomination Form) must be annotated with the date the misconduct/tax compliance verification was completed by WRD.

    3. QSIs may be withheld if deemed necessary to protect the integrity of the Service.

  9. Employees will be given five business days to decide whether to accept the QSI offer. Supervisors will need to adjust these timeframes for employees on approved leave. Business units will make reasonable attempts to facilitate a timely response. If no response is received, the form will be documented as "no response, QSI not accepted" and the employee will not be granted a QSI.

    1. For employees in non-work or furlough status, supervisors will forward the Form 14776, QSI Nomination, Approval, Offer and Election Form to their home address via US Mail and allow ten business days for response.

    2. Employees who decline QSIs will remain eligible for performance awards, provided all other performance award requirements are met.

  10. Each business unit must determine which employees will receive a QSI no later than eight weeks prior to the effective date for the annual IRS-NTEU performance award payments or timeframe indicated in IRS guidance.

  11. HCO will coordinate with the Information Technology (IT) organization to timely program/update the National Performance Award Program (NPAP) database to ensure BU QSI recipients are not considered for a performance award for the same rating period (i.e., the QSI recipients will be marked ineligible for a performance award). Business units must ensure that NBU QSI recipients are not submitted for performance awards for the same rating period.

  12. Business unit award/finance/QSI Coordinators will forward to the HCO Awards Team the QSI Spreadsheet to submit the names of the QSI recipients in accordance with the annual guidelines.

  13. The QSI final approval will be completed by the Human Capital Officer or his/her designee. The QSI approval is subject to review pursuant to IRS policies, misconduct/discipline screening, federal tax compliance and budget. The QSI will not be considered final approved until verification of these requirements is completed by the Human Capital Officer or his/her designee.

  14. HCO will communicate QSI effective dates annually in coordination with the annual performance award payouts.

    1. QSI effective dates for employees evaluated on Form 6850 typically will be one pay period prior to the annual performance awards effective date.

    2. QSI effective dates for management officials typically (no requirement) will be one pay period after the annual performance awards effective date. (This is due to the rating period ending September 30 and to allow business units ample time to make the QSI selections.)

  15. Each business unit will be responsible for the timely input of QSI PARs for all BU and NBU employees. The PAR actions must be input into HR Connect at least two full pay periods prior to the effective date. If not, the date of the PAR Action will be changed to the following pay period. The narrative justification used on the QSI Nomination, Approval, Offer and Election Form for granting the QSI must be included in the remarks section of the PAR, along with the rating period covered and date the misconduct/tax compliance screenings were complete. See Award Processing Guide (SOP 451-1).

    Note:

    Regulations do not permit QSI effective dates to be made retroactively; see IRM 6.451.1.10.6 for additional information.

QSI Additional Factors

  1. Once a QSI election has been confirmed and accepted, it cannot be rescinded.

  2. A QSI does not affect the timing of an employee’s next regular Within-Grade Increase (WGI), unless the QSI places the employee in step 4 or step 7 of his or her grade. In these cases, the employee must complete the full waiting period for the new step 104 weeks for steps 4-6, or 156 weeks for steps 7-9. However, the time an employee has already waited is not lost; it continues to count towards the waiting period for the next step increase. The QSI provides the employee the benefit of receiving an additional step increase at an earlier date than he/ she originally would have without losing any time creditable towards his or her next WGI.

  3. Employees at step 9 should consider the effective date of their next Within-Grade Increase to a step 10 and whether a QSI is advantageous. The examples provide greater detail in determining the benefits of a QSI for employees at the step 9.

    1. Employees at the step 9 due a WGI between January and September of the calendar year of the QSI, election will not receive the benefit of the QSI because the employee’s step would be a step 10 when the QSI becomes effective. QSIs are generally awarded in the first quarter (between October and December) of the fiscal year following the rating of record. See example below:

      Current Step: 9
      Due Date of Next WGI: 9/1/2020
      QSI Election Made: 6/30/2020
      QSI Effective Date: 10/1/2020
  4. This example shows that the employee’s WGI would be received on the due date of 9/1/2020; therefore, the QSI would not be granted since the employee would be at the step 10 on the QSI effective date of 10/1/2020.

  5. Further details are available on QSI Nomination, Form 14776.

Effects on Temporary Promotions

  1. A QSI must be applied to the rate of pay for the position on which the rating of record was based.

  2. If the rating of record was based on the employee’s performance in the temporary promotion, the QSI must be based on the rate of pay for the temporary position. When the temporary promotion terminates, the employee will lose the benefit of the QSI because pay is set in the lower grade as if the employee had not been temporarily promoted, unless the employee is eligible for a higher rate under the maximum payable rate rule in 5 CFR 531.221. In this situation, employees should weigh the benefits of the QSI in the temporary position and the impact upon the change to lower grade to the prior position.

  3. If the rating of record was based on the employee’s performance in the permanent position, the QSI cannot be awarded based on the rate of pay received during the temporary promotion. The employee would be eligible to be granted the QSI after termination of the temporary promotion when the employee returns to the lower-graded position.

  4. If an employee is approved for a QSI on his/her position of record and the temporary promotion becomes permanent, the QSI cannot be granted in the higher-graded position to which the employee has been promoted (e.g., if a QSI is approved based on outstanding performance at the GS-9, the QSI cannot be granted at the GS-11).

  5. If an employee is approved for a QSI on his/her position of record and becomes eligible for a career ladder promotion while on the temporary promotion, the QSI cannot be granted on the higher grade of the career ladder.

    Note:

    Employees on non-competitive temporary promotions will not be eligible for a QSI until the temporary promotion has ended and they are returned to their permanent position.

QSI Documentation and Review

  1. All documentation for those selected and offered QSIs must be forwarded to the employees' immediate supervisor for filing in the Employee Performance File (EPF). Documentation includes the final QSI Nomination Form, which should include the QSI offer and employee response. As a reminder, performance evaluations must be filed in the EPF.

  2. Business unit QSI Coordinators will maintain records of the nomination and selection process, including names of all nominations, selections, misconduct screening, offer letters, and PARs.

  3. After QSIs have been made effective, business units and HCO will review QSI distribution patterns.

Retroactive Limitations

  1. In accordance with decisions of the Government Accountability Office, a QSI may not be granted retroactively. This means that a QSI may not be made effective before the date it was approved by the authorized official (the IRS Human Capital Officer or his/her designee). However, delays beyond normal processing cycle due to human or computer error may constitute an administrative error, which is grounds for processing the QSI retroactively. The business unit must have completed QSI Nomination Process within the annual timeframe issued by the HCO Awards Program Office and obtained the business unit approval signatures prior to this cut-off date to satisfy this exception.

Special Act and Manager Awards

  1. Special Act Awards are granted solely at management discretion to recognize a superior accomplishment, productivity gain, or other personal effort, regarding or related to official employment, that contributes to the efficiency, economy, or other improvement of government operations, achieves a significant reduction in paperwork, or represents an accomplishment in the public interest.

  2. Manager Awards are a type of IRS Special Act Award granted for more immediate recognition. These awards may be used to recognize an achievement performed in an exemplary manner that is more limited in scope than a Special Act, are granted at management discretion. Approval and processing procedures are more streamlined than for special act awards.

  3. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibits expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are determined to be non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

  4. Award Certificates are available for presentation with any of the Special Act and Manager Awards.

Monetary Special Act Awards

  1. Monetary Special Act Awards are granted to employees to recognize a superior accomplishment, productivity gain, or other personal effort, regarding or related to official employment, that contributes to the efficiency, economy, or other improvement of government operations, achieves a significant reduction in paperwork, or represents an accomplishment in the public interest. These awards may be granted to employees as individuals or as members of a group or team.

  2. Monetary Special Act Awards are granted solely at management discretion.

  3. Monetary Special Act Awards are granted in the form of monetary payments afforded to employees assigned to a NBU position only, provided the business unit allocates funding from the NBU performance budget to fund these awards.

  4. The business unit has the option to allocate up to 10% of their NBU performance award budget to fund Monetary Special Act and Monetary Manager Awards to NBU employees.

  5. Each business unit will develop internal procedures for their managers to ensure award nominations are reviewed against the 10% limitation prior to approval and processing.

  6. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

  7. There is no limit to the number of Monetary Special Act awards that an employee may receive for his/her accomplishments either as an individual or a member of a group or team. Written justification is required for each Monetary Special Act award and requires approval as outlined in the Table of Delegate Authorities to Approve Awards. For additional guidance, see HCO Standard Operating Procedure 451-1, Processing Awards in HR Connect. Guidance on determining the amount of a Monetary Special Act award is provided in Form 9127, Recommendation for Recognition.

Monetary Manager Awards

  1. Monetary Manager Awards are a type of Monetary Special act award granted for more immediate recognition. These awards may be used to recognize an achievement performed in an exemplary manner that is more limited in scope than a special act.

  2. Monetary Manager awards are granted solely at management discretion.

  3. Monetary Manager awards are granted in the form of monetary payments afforded to employees assigned to a NBU position only, provided the business unit allocates funding from the NBU performance budget to fund these awards.

  4. The business unit has the option to allocate up to 10% of their NBU performance award budget to fund Monetary Special Act and Monetary Manager Awards to NBU employees.

  5. Each business unit will develop internal procedures for their managers to ensure award nominations are reviewed against the 10% limitation prior to approval and processing.

  6. Monetary Manager awards are limited to a minimum of $50 and a maximum of $500, and approval and processing procedures are more streamlined than for other special act or service awards.

  7. Supervisors may approve Monetary Manager awards up to $250 without higher level management review or approval (but subject to any management or financial coordination required by the business units.) Detailed approvals and associated amount limitations are outlined in the Table of Delegate Authorities to Approve Awards. For additional guidance, see HCO Standard Operating Procedure 451-1, Processing Awards in HR Connect. Guidance on determining the amount of a Monetary Manager award is provided in Form 9127, Recommendation for Recognition.

  8. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibits expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are determined to be non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

    Note:

    No funds from the BU performance budget are to be provided as discretionary awards, including Monetary Special Act and Monetary Manager Awards

    Note:

    Please note, if a manager wants to grant an employee a Time-Off Special Act or Time-Off Manager Award, please follow section IRM 6.451.1.11.3.

Time-Off Special Act and Time-Off Manager Awards

  1. The purpose of Time-Off Special Act and Time-Off Manager Awards is to increase employee productivity and creativity by rewarding their contributions to the quality, efficiency, or economy of government operations; to enhance the quality of work life for employees; and to encourage and recognize one-time, non-recurring accomplishments beyond normal job requirements.

  2. Time-Off Special Act and Time-Off Manager awards are granted in the form of time-off afforded to employees assigned to a BU or NBU position and are granted under guidance by 5 CFR 451.104 (a) and Article 18, Section 4 of the National Agreement.

  3. Time-Off Special Act and Time-Off Manager awards are discretionary awards granted solely at management’s discretion.

  4. Time-Off Special Act and Time-Off Manager Awards granted under this guidance are intended for one-time, non-recurring accomplishments above or beyond normal job requirements as authorized by the 5 CFR 451.104(a) and Article 18, Section 4 of the 2016 National Agreement.

  5. Time-Off Special Act and Time-Off Manager awards granted under these provisions are not charged to the awards or bonus budgets; however, the value of these awards is limited to a maximum of 10% of the business unit's performance award budget. Business units may utilize any amount up to the 10% limitation to ensure organizational needs are met.

  6. Each business unit will develop internal procedures for their managers to ensure award nominations are reviewed against the 10% limitation prior to approval and processing.

  7. Conversion of a Time-Off Special Act and Time-Off Manager Awards to a monetary award is prohibited. The 5 CFR Section 451.104 (f) states, "A Time-Off Award granted under this subpart shall not be converted to a cash payment under any circumstances" .

  8. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23 for details.

  9. Employees who were issued a leave restriction letter within the 12 months before the award effective date are not eligible for a Time-Off Special Act and Time-Off Manager Award under this policy.

  10. Supervisors nominating an employee for a Time-Off Special Act or Time-Off Manager Award must complete Form 9127, Recommendation for Recognition and include written justification describing the employee accomplishment that is the basis for the Time-Off Special Act and Time-Off Manager Award. This form must be maintained in the employee’s (EPF).

  11. Time-Off amounts are limited to a minimum of one hour requiring management approval.

  12. Supervisors may approve Time-Off Special Act and Time-Off Manager Awards of not more than eight hours for an individual employee accomplishment without higher-level management review or approval (subject to any management or financial coordination required by the business unit).

  13. Time-Off Special Act and Time-Off Manager Awards greater than eight hours require second level or higher approval in accordance with individual business unit processing requirements.

  14. Employees may not take time-off before it has been processed and posted to the time and attendance record.

    Note:

    Please see FAQs for additional information regarding Time-Off Special Act and Time-Off Manager Awards.

Time Off Awards (General Provisions)

  1. This section provides general provisions for all types of Time-Off Awards under this IRM.

  2. Not more than 40 hours of time-off may be granted to any full-time employee for any single contribution during a leave year. (Similarly, a part-time employee, or an employee with an uncommon tour of duty, may be granted hours not to exceed one-half of the average number of hours in the biweekly scheduled tour of duty.)

  3. No more than a combined total of 80 hours of time-off may be granted to any full-time employee during a leave year including a Time-Off Award in lieu of a monetary performance award or performance bonus. (Similarly, during a leave year, a part-time employee, or an employee with an uncommon tour of duty may be granted a total number of hours not to exceed the average number of hours in the biweekly scheduled tour of duty.)

  4. Supervisors are responsible for ensuring an employee has not reached the 80- hour Time-Off Award limit in a calendar year. This includes all Time-Off Awards (e.g. in lieu of performance, bilingual, etc.). This can be done by reviewing the leave balances displayed in the payroll system or through the IRS Human Resource Reporting Center via the Secured business unit Sites tab.

    Note:

    See Calculating Time-Off and Supplemental Cash Awards, IRM 6.451.1.12.2 for procedures applicable when a Time-Off Award would exceed the 40 or 80-hour limitation.

  5. All employees are eligible for Time-Off Awards (either as individuals or as members of a group), except Presidential Appointees, members of the Senior Executive Service, and Schedule C Appointees, and other IRS officials who are governed by separate regulations and policies.

  6. Employees who were issued a leave restriction letter within the 12 months before the award effective date are not eligible for a Time-Off Special Act or Time-Off Manager Award under this policy.

  7. Time-off shall not be used:

    1. to reduce an outstanding leave deficit such as advanced sick leave,

    2. as a substitute for other personnel or pay actions, or

    3. in lieu of payment for overtime worked.

  8. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

Scheduling and Taking Time-Off

  1. Employees are responsible for obtaining their supervisor’s approval for the use of time-off hours in the same manner as all leave approval requests.

  2. Employees may not use the Time-Off Award until it is posted in Single Entry Time Reporting. Once available time-off may be taken in a single block of time or in one-hour increments.

  3. The granting of time-off does not increase an employee's "use or lose" annual leave, and time-off should be scheduled so as not to conflict with existing "use or lose" annual leave. Time-off absence is not justification for the restoration of forfeited annual leave.

  4. Because time-off is not annual leave, it cannot be transferred to another federal employee under the Voluntary Leave Transfer Program.

  5. Time-off balances will be forfeited if there is a balance at the time of separation. The 5 CFR Section 451.104 (f) states, "A Time-Off Award granted under this subpart shall not be converted to a cash payment under any circumstances."

  6. Time-off must be scheduled and taken within one year after the effective date of the award unless one of the exceptions in this paragraph applies. Time-off that is not taken within one year (26 pay periods) and not subject to one of the exceptions below, shall be forfeited and shall not be restored. The second-level supervisor may grant a written exception prior to expiration in the following situations:

    1. If an employee is granted extended annual or sick leave or leave without pay that would prevent taking the time-off within one year;

    2. If an employee is issued a leave restriction letter after the Time-Off Award approval, which would prevent taking the time-off within one year;

    3. When physical incapacitation for duty occurs during a period when an employee is taking time-off, sick leave may be granted for the period of incapacitation (medical certification may be required upon the employee's return to work). Time-off should then be rescheduled, subject to the supervisor's approval:

    4. If military service requiring military leave, military leave without pay, annual leave, or sick leave is approved and used. In this situation, leave granted for military service after the effective date of the Time-Off Award and before the employee returns to duty with IRS, shall extend the one-year time limitation based on an eight-hour workday. For example, if a total of 200 hours of this type of leave was approved and used for military service, the one-year limitation shall be extended by five calendar weeks; or

    5. If the employee provides the immediate supervisor with a copy of the military orders directing the employee to active duty and a copy of the certificate on completion of such duty. This information should be provided to the supervisor upon the employee’s return to duty with IRS and before expiration of the extended period. Higher level approval is not required for this exception. Supervisors shall contact their payroll representative promptly to have the expiration date of the Time-Off Award extended.

Calculating Time-Off and Supplemental Monetary Awards

  1. When time-off has been approved as an award the time-off hours shall be calculated as follows:
    The value of the Time-Off Award is divided by the employee's hourly rate of pay, rounded to the nearest dollar. The result is rounded to the nearest hour. For example, if the recommended award amount is $500.00, and an employee earns $15.72 an hour, the $500.00 award amount is divided by $16.00; (the $15.72 hourly rate of pay, rounded to the nearest dollar). The result of 31.25 hours is rounded to a 31-hour Time-Off Award.

  2. If the value of the Time-Off Award is divided by the employee’s hourly rate of pay and exceeds the 40-hour limitation, the balance of the award will be paid as a monetary award. For example, if the recommended award amount is $800.00 and an employee earns $15.72 an hour, the $800.00, award is divided by $16.00 (the $15.72 hourly rate of pay, rounded to the nearest dollar). The result of 50 hours exceeds the 40-hour limitation; therefore, the employee would receive a 40-hour Time-Off Award, and the balance of $160.00 would be issued as a monetary award.

    Note:

    Time-Off Special Act and Time-Off Manager Awards under section 6.451.1.11.3 shall not have any time-off in excess of the 40-hour limitation converted into a monetary award in accordance with 5 CFR Section 451.104 (f).

  3. For calculating time-off, the hourly rate of pay is determined by the employee's basic annual salary on the date the award is approved. The annual rate of basic pay used must include any applicable locality payment under 5 CFR 531, Subpart F, special rate supplement under 5 CFR 530, Subpart C (special salary rate schedules), or similar payment or supplement under other legal authority. For an employee receiving a retained rate under 5 CFR 536, Subpart C (or similar authority, such as 5 CFR 359.705), the rate of basic pay is the maximum payable rate for the employee's grade or level, rather than the retained rate.

  4. Hourly rates of locality pay for employees paid under the General Schedule are posted on the OPM locality pay tables web site locality pay tables website. Hourly rates for employees paid under the IR Pay System are posted on the IRS Source at the Payband Resource Center.

    Note:

    For BU employees, annual performance awards granted as time-off and supplemental monetary award calculations are computed within the National Performance Awards Program.

  5. Supplemental Monetary Awards. If the time-off component of an award (calculated as described in paragraph 2) results in hours that exceed the 40- or 80- hour limitation described in 6.451.1.12 (1) or (2), a supplemental monetary award shall be paid for the value of the excess hours. This award is paid because the employee is not authorized to receive time-off hours in excess of the limitation.

    Note:

    Management computation of Time-Off Awards and supplemental monetary awards is subject to verification and processing by HCO.

    Note:

    Time-Off Special Act and Time-Off Manager Awards under section 6.451.1.11.3 shall not have any time-off in excess of the 40-hour limitation converted into a monetary award in accordance with 5 CFR Section 451.104 (f).

Bilingual Awards

  1. Bilingual Awards are Special Act Awards automatically granted to BU and NBU employees assigned to a bilingual Position Description (PD) who use their bilingual skills on a regular basis and are currently rated at least "Fully Successful" .

Bilingual Awards Eligibility - Bargaining Unit (BU)

  1. Eligibility is based on the employee’s assigned position. BU employees assigned to a bilingual PD, and who, on a regular basis rather than occasionally, utilize their bilingual skills and whose performance is currently rated at least "Fully Successful"; are eligible to receive a special act award of $350.

    1. Bilingual Awards may be granted only to individual employees either as Monetary or Time-Off Awards.

    2. Bilingual Awards may be granted to employees with a "Fully Successful" rating assigned to a bilingual PD for at least 60 days during the rating period.

    3. Time spent in leave without pay, in a non-pay status, as a part-time employee, or in an NBU position does not impact this award.

    4. These awards are generally issued during the first quarter of the fiscal year based on performance for the appraisal period.

    5. Providing a Bilingual Award does not exclude employees from receiving a Performance Award.

    6. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.


    Prorating Bilingual Awards
    In compliance with the NPAA, employees assigned to a bilingual PD for less than 60 days as of June 30 may receive a Bilingual Award provided the employee was on the bilingual PD for 260 hours during the rating period of the appraisal year and was rated "Fully Successful" .

    Employees assigned to a bilingual PD and who serve between 260-320 hours can be provided 25% of the total $350.00, if voluntarily elected by the employee and approved by the manager in-lieu of monetary.

    Employees not on a Bilingual PD
    Employees who were not assigned to a bilingual PD but who on a regular basis, rather than occasionally, utilize their bilingual skills, may be entitled to a Bilingual Award. The manager must apply the criteria in Article 18, Section 5 of the National Agreement to determine whether a Bilingual Award is warranted.

    Article 18, Subsection 5A states:
    Employees, who on a regular basis, rather than occasionally utilize their bilingual skills and whose performance is currently rated at least "Fully Successful," and who are not otherwise compensated through a Performance Award or Superior Accomplishment Award based on the use of their bilingual skills shall receive a Special Act Award of $350.

    1. Eligible employees are limited to one award of this type annually.

Bilingual Awards Eligibility - Non-Bargaining Unit (NBU)

  1. All guidance in IRM 6.451.1.13.1 applies to NBU employees. The NBU employee’s performance must be at least "Fully Successful " (a "Met" or "Fully Successful" rating or "Higher" ) to satisfy the eligibility requirements for this award type.

Employee Suggestion Program

  1. Employee Suggestion Program (ESP) Awards are based on the adoption of employee suggestions to improve the efficiency or effectiveness of government operations. Details outlining the ESP can be found on the HCO ESP Home Page, HCO Suggestion Awards Program.

  2. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibits expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23 for details.

IRS Employee Recognition Program

  1. The Employee Recognition Program is the Service’s exclusive, non-monetary, honorary recognition program that provides an important way to recognize individual and team accomplishments and contributions in support of the IRS mission, strategic goals and values. This Servicewide program provides multiple opportunities for employees to be recognized for exemplary service by various levels of management and by their peers. The program has four basic elements: Commissioner Awards and Recognition; Head of Office Awards and Recognition; Executive and Manager Awards and Recognition; and Peer-to Peer Recognition, including E-Cards and Shout Outs. Among the honors that can be bestowed are the Commissioner’s Award, the IRS Excellence Award, the Horizon Award, and the Vision Award. Click on the hyperlink above for complete program details.

  2. IRS Manager Recognition Toolkit has been designed to be a handy managers’ guide to recognition tools and resources. Many of these tools are of little or no cost to the manager or the IRS and do not require complicated procedures. These recognition tools can be powerful ways to recognize accomplishments and provide incentives for high performance and serve as a vehicle to increase employee engagement.

  3. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23.3 for details.

IRS Federal Career Service Recognition Program

  1. The IRS values each employee as a vital member of the organization. The IRS Federal Career Service Recognition Program has been established to convey appreciation by recognizing milestones of employees’ creditable federal service. At key points during their careers, IRS employees shall be awarded federal career service recognition items to emphasize appreciation for their service to the IRS and to the Federal Government.

    1. Creditable Federal Service (Eligibility). IRS uses the Leave Service Computation Date, as captured in the Treasury Integrated Management Information System (TIMIS), to determine eligibility for a Career Service Recognition Award. All civilian service for departments or agencies of the Federal Government and only military service that is creditable for service computation date purposes are used when determining federal career service recognition eligibility. Service credit granted for prior non-federal work experience and experience in a uniformed service for determining the annual leave accrual rate of a newly-appointed employee is not creditable to determine eligibility for a Career Service Recognition Award.

    2. Career service emblems consist of federal career service certificates and the IRS career service plaques.

  2. Career service certificates for five years, ten years, and 15 years of service are emailed to the employee’s immediate manager. Managers will have the option to email the certificate or present the certificate to the employee if they choose.

  3. Career service plaques recognize creditable federal civilian and honorable military service for 20, 25, 30, 35, 40, 45, 50, 55 and 60 years of service. Career service plaques are standardized throughout the Service. Plaques are engraved with the employee’s name of record and indicate the specific milestone year.

  4. Recognition presentation events are discussed in IRM 6.451.1.21, Award Presentation Ceremonies.

  5. The Austin Payroll Center is responsible for requisitioning and providing mementoes to employees. The mementoes typically arrive the month the employee is due the award. Austin Payroll provides guidance and procedures regarding employee eligibility and the ordering, stocking, distribution, and replacement of career service certificates and plaques. Additional information can be found Career Service Recognition.

Secretary of the Treasury Honor Awards Program

  1. The Secretary of the Treasury Honor Awards Program is designed to bestow honor on selected individuals as an official recognition of achievement after their career with Treasury or as recognition for a special accomplishment during their career with Treasury. These awards are the Secretary’s way of acknowledging extraordinary dedication to public service and substantial contribution to Treasury’s mission. Contact your business unit representative listed Employee Recognition Program POC for more information on these awards and the nomination process.

Albert Gallatin Award

  1. The Albert Gallatin Award is Treasury’s highest honorary career service award. It is conferred by the Secretary upon the retirement or death of a federal employee who served 20 or more years in the Department and whose record reflects fidelity to duty. The IRS Employee Recognition Program team provides guidance and procedures regarding employee eligibility and the distribution of Gallatin Awards.

Externally Sponsored Awards

  1. Periodic announcements are made of prestigious honors in recognition of notable achievements in the public sector that are sponsored by agencies or organizations outside the IRS. Please visit the IRS Employee Recognition Program website for additional information.

Travel Gainsharing Awards

  1. This is a voluntary program administered by the CFO that rewards employees who save the IRS money while on official travel. Employees share in the savings from the use of less expensive lodging and/or use of frequent flyer benefits to purchase airline tickets for official travel. For a full description of this program see IRM 1.32.1.14, Servicewide Travel Policies and Procedures. IRS Gainsharing

    Note:

    Some business units require that Form 9127, Recommendation for Recognition, be completed and routed through the appropriate officials. Other offices process gainsharing awards through HR Connect. Employees should contact their supervisors or finance staff for applicable procedures.

  2. All awards are subject to misconduct and federal tax compliance screenings in accordance with IRS procedures, which prohibit expending funds on employee awards without considering the employee’s conduct and federal tax compliance. Employees who are non-compliant with their tax obligations will be ineligible for an award. Please see IRM 6.451.1.23 for details.

Award Presentation Ceremonies

  1. Responsible officials should publicly recognize employees as they reach significant career milestones or are granted other awards. Supervisors may determine the nature (formal or informal), frequency and similar details of recognition events. Recognition events should be coordinated with appropriate IRS officials.

  2. When a proposed recognition event would affect a BU employee, advice should also be sought from the initiating office’s Human Capital or Employee Relations staff and/or the HCO WRD regarding the negotiated obligation to advise the NTEU in advance of the event. See also, the National Agreement FAQs, Article 18.

  3. Presentations shall be made in an appropriate and dignified setting, such as group or staff meetings or scheduled employee recognition ceremonies. Ideally, presentations should be made as close to the anniversary date of the career milestone or grant of the award as possible. However, supervisors may determine that periodic ceremonies where large numbers of eligible employees may be honored are also appropriate.

  4. The IRS Managers' Recognition Toolkit and IRM 1.32.20, Servicewide Financial Policies and Procedures - Using Appropriated Funds to Purchase Meals and Light Refreshments provide guidance on purchasing light refreshments for employee recognition events.

Pay and Tax Consideration

  1. Monetary awards are in addition to the regular pay of the recipient and are subject to required deductions including those for federal, state and local income taxes.

    Note:

    Some non-monetary awards and monetary equivalent awards such as gift certificates, vouchers, and charge, credit, or gift cards are taxable. Employee Tax Compliance jointly issued by IRS and the OPM, and IRS Publication Pub 15-B, Employer’s Tax Guide to Fringe Benefits, for detailed guidance on the tax treatment of non-monetary awards.

    1. Monetary awards do not affect the computation of salary differentials.

    2. Monetary awards are not basic pay for any purpose.

    3. Individual monetary awards are subject to the limitation on pay described in IRM 6.530.1, Aggregate Limitation on Pay and Special Rate Schedules

Misconduct Screenings and Tax Compliance

  1. The purpose of misconduct screenings is to protect the integrity of the Service and to ensure compliance with Section 110 of the Consolidated Appropriations Act, Pub. L. 115-141, payment to any IRS employee under a bonus, award, or recognition program and the Department of the Treasury’s 2014 Monetary Recognition and Employee Misconduct Non-Senior Executive Service (SES) Policy.

  2. The Act prohibits the IRS from obligating or expending funds to make a payment to any employee under a bonus, award, or recognition program unless such program or process considers the conduct and federal tax compliance of such employee or former employee.

Coverage

  1. This guidance applies to all BU and NBU employees.

  2. Senior Executive Service and other high-level officials are covered under separate procedures.

  3. This guidance should be read in conjunction with any applicable collective bargaining agreements; should this guidance conflict with any provisions, the terms of the collective bargaining agreements are controlling for BU employees.

Employee Misconduct and Tax Compliance Non-SES Policy

  1. IRS will not grant awards/high-level recognition when deemed necessary to protect the integrity of the Service. All employee misconduct that results in disciplinary or adverse action, and all employees who are the subject of proposed disciplinary/adverse actions or ongoing conduct investigations (e.g., Treasury Inspector General for Tax Administration Reports of Investigation) will be reviewed by the designated management official(s) for consideration of award eligibility.

  2. Additionally, the IRS will examine the federal tax compliance status of all employees prior to the issuance of an award.

Misconduct and Tax Compliance Screening

  1. Business unit Points of Contact will serve as liaisons between the business unit and WRD for the misconduct screening process.

  2. All covered Awards, Recognition and Other actions as described in 6.451.1.23.4 will be screened for misconduct, in accordance with the Misconduct Screening Procedures, as well as for federal tax compliance, prior to initiating any type of covered recognition or awards.

  3. The applicable period for review will be the 12-month period, or relevant performance year as appropriate, prior to the effective date for the type of award under consideration.

  4. Requests to grant monetary recognition to any employee involved in misconduct that warranted a suspension or higher penalty within the applicable time period must be justified in writing by the recommending official and approved by the Commissioner or a designee of the Commissioner who is at least one level higher than the recommending official.

Covered Awards, Recognition and Other Actions

  1. The following recognition or awards types are subject to misconduct and federal tax compliance screenings:

    • Performance Awards/Bonuses (monetary and time-off)

    • Bilingual Awards (monetary and time-off)

    • Retention, Relocation, Recruitment Incentives

    • TOA

    • QSIs

    • Foreign Language Awards

      Note:

      Foreign Language Awards are not the same as IRS Bilingual Awards. Foreign Language Awards may be granted only to law enforcement officers as defined in statute (5 USC § 4521, et seq.), e.g., GS-1811 Criminal Investigators (Special Agents) assigned to the Criminal Investigation Division.

    • Performance Based Increases (PBIs) for IR Managers

    • High-level non-monetary recognition such as Commissioner/Deputy Commissioner/Head of Office Awards

    • External awards, such as Service to America Medal Awards, Federal Employee of the Year Awards, Flemming Award etc.

    • Employee Suggestion Awards

    • Travel Gainsharing Awards

    • Referral Bonuses

    • Monetary Special Act and Manager Awards