Definition

A reward or gift of money for success in competition, for past services rendered, or other scholastic achievement. Payments to Employees Prizes and Service Award payments to a University employee such as, but not limited to, employee of the month, etc. must be processed thought the payroll system on either Form UPP 172, Monthly Extra Service Payment Request, or Form UPP 173, Biweekly Additional Payment Form. These payments will be taxed and the dollar amount of the prize or award will be included on the employee's IRS Form W-2, Wage and Tax Statement, at calendar year end. Gifts to employees made in accordance with University Financial Policy 1211, Gifts Based on University/Employee Relationships will not be taxed.

Required Payment Forms

• Payroll Monthly Extra Service Payments, Form UPP 172
  • Adobe Acrobat Version
  • MS Word Version
    
    
• Biweekly Additional Payment, Form UPP 173
  • Adobe Acrobat Version
  • MS Word Version

Payments to Students who are U.S. Citizens or Permanent Residents

Prize and Scholastic Award payments that are not for services rendered to students who are either U.S. citizens or Permanent Residents will be reported on Form 1099MISC at calendar year end.

Required Payment Forms

Payments to US Citizens

1. Direct Payment Voucher (DPV), Comptroller Form 88R
2. IRS Form W-9, Request For Taxpayer Identification Number

Payments to Permanent Residents

1. Direct Payment Voucher (DPV), Comptroller Form 88R
2. IRS Form W-9, Request For Taxpayer Identification Number
3. Form UPP 192, Alien Determination of Residency Form
4. Copy of Permanent Resident or Resident Alien card (green card) or copy of the I-551 Stamp that is printed on the applicant's passport

Payments to Students who are Aliens (Non-U.S. Citizens)

Prizes and Scholastic Awards that are "not for services rendered" issued to "Non Resident Alien" Foreign Students will be reported on an IRS Form 1042S, Foreign Persons US Source Income Subject to Withholding at calendar year end. According to IRS regulations, 30% tax withholding will be deducted from each payment. In order to issue a payment the student must have the following:

1. Either a Social Security Number (SSN) or Individual Tax Identification Number (ITIN), AND
2. The appropriate Visa Classification. Click here to view web Immigration and Naturalization Classification Matrix

   Required Payment Forms

   1. Direct Payment Voucher (DPV), Comptroller form 88R
   2. IRS Form W-8BEN-I, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding
   3. Form UPP 192, Alien Determination of Residency Form
   4. Based on VISA type, foreign students and individuals will also required to provide copies of various INS and other documents.
      • Requirements for F-1 Student VISA Holders
      • Requirements for F-2 Dependent of F-1 Foreign Student VISA Holders
      • Requirements for J-1 Student VISA Holders
      • Requirements for J-2 Dependent of J-1 Foreign Student VISA Holder