Cash Awards


DEFINITION of 'Cash Awards'

An award given to an employee or contestant in the form of cash. Cash awards can either be the only award option or taken in lieu of a tangible item.


Regardless of whether they are given to an employee as a reward for merit or to the winner of a contest, cash awards are always fully taxable as income.

Richard Hatch, the first winner of the game show Survivor, found this out the hard way, when he didn't claim his million dollar winnings on his tax return.

  1. Cash Wages

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  2. Cash And Cash Equivalents - CCE

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  3. Remuneration

    Payment or compensation received for services or employment. ...
  4. Cash

    Legal tender or coins that can be used in exchange goods, debt, ...
  5. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  6. Sticky Wage Theory

    An economic hypothesis theorizing that pay of employees tends ...
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  1. Are Cafeteria plans taxable?

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  2. Are Cafeteria plans exempt from Social Security?

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  3. How do I calculate insurance premium tax?

    In the United States, consumers do not pay any additional tax on health insurance premiums. However, your insurance premiums ... Read Full Answer >>
  4. How do you rollover/transfer a 401(k) to another 401(k)?

    When an employee leaves a job due to retirement or termination, the question about what to do with the accumulated balance ... Read Full Answer >>
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