L&S Lump Sum Payments to UW Students Guide
We will look into the original source of the funds that are being used for the awards. For example, funds that are transferred from Foundation to University 233 fund. If a fund at UW Foundation is setup as a scholarship it has to be processed as a scholarship when it is transferred to a 233 fund. We are asking for a copy of the award letter to be forwarded to the Business Office as a part of this review.
Lump Sum Payments Guide Resident Aliens:
Over the past year or so, the process through which we are able to make payments to UW students (whether graduate or undergraduate) may seem to have changed. Although there has not been a specific policy change, the overall campus landscape has changed; exceptions that were sometimes being made in the past can no longer be made without jeopardizing UW System tax reporting and withholding requirements.
The following documents and processes has been implemented to standardize the way the lump sum payments are to be evaluated and made.
Click on this link for the cover memo
Click on this link for the lump sum payment form
Click on the links below for the department student lump sum payment forms
Lump Sum Payments Guide Nonresident Aliens:
The following is from an email reminder for the November 20 L&S Topic of the Month Important Change in Process for Lump Sum Non-Service Payments to Nonresident Aliens:
There will soon be a significant UW-System wide change in how non-service related lump sum payments are processed for Nonresident Aliens (NRA's). All UW campuses will be implementing this change in order to comply with federal tax and reporting requirements. Past practice was to process fellowship and scholarship lump sum payments to NRA's through Payment to Individual Reports (PIR's) routed through divisional business offices and Accounting Services. The change was effective with the 2015 calendar tax year to be processed through payroll as non-service related lump sum payments to NRA's.
The Glacier system will be of help in confirming nonresident alien status for tax purposes of fellowship and scholarship recipients; however it is important for all departmental staff to be aware of this change in process. It is critical that all financial managers, payroll coordinators and department administrators work together to share this information proactively during this transition period.
Click this link for the FlowChart Lump Sum Non-Service payments
Click this link for the L&S NRA Steps document
Click this link for the NRA letter-revised document
Click this link for the definitions document