|
Student
awards should be paid with Endowment funds. The award request should be sent
directly to Endowment using a Check Request for Student Award or Prize form
unless the student is a nonresident alien.
For
additional information about paying awards, refer to section 5.8 in
Endowment's Fund Administration & Use Handbook on KUEA’s Website (www.kuendowment.org) for further
information.
If
a student is a nonresident alien, the payment is processed on a voucher
through Central Accounting Services. Award payments to nonresident alien
students need to use account 12950 and fund 725. A contractual
services from is used. The recipient must sign the form unless the award
is supposed to be a surprise. If it is a surprise, please note on the form. A
KUEA Endowment Fund Payment Verification form needs to accompany the voucher.
All awards to nonresident aliens will have taxes withheld.
For
nonresident aliens who are employees, awards must go through Payroll. If it
is truly an award without a service component, Payroll needs to be aware that
FICA will not be paid. Departments may need assistance to understand what
constitutes an award with or without a service component.
For example,
if there is an award for a GRA who achieves a certain GPA, that may
constitute a service component. If, however, an award is provided to someone
who achieves a certain GPA and they just happen to be a GRA, then a service
component may not exist.
Departments
should maintain clear and concise documentation as to why an award was given.
The IRS often looks for individuals who received both a 1099 and W-2 as
reasons for further investigation in an audit. Without adequate
documentation, there could be penalties.
|
