Other Payments

WVU Foundation

Payments made using WVU Foundation funds should follow the same guidelines outlined above with compensatory stipend payments paid through the University payroll system; non-compensatory stipend payments to WVU students paid through the student’s Banner account; and non-compensatory stipend payments to non-WVU students paid through PCPS.

Reimbursements

A travel reimbursement, meal per diem, or other expense reimbursement payment made to an individual traveling or conducting business on behalf of the University should be made under the University’s Travel and Expense Manual. The department making the payment should determine whether the individual is incurring the expenses primarily for university business or primarily for the benefit of the individual. Reimbursements where the University is the primary beneficiary, with a valid business purpose, and for which support for the business expense is provided timely are not reportable nor taxable to the individual as long as the University’s Accountable Plan rules are followed and may be paid through the PCPS as a reimbursement.

Funds provided for travel or for items provided where the individual is the primary beneficiary and when the funds are provided to the individual as a student in pursuit of the individual’s education could be considered an additional form of gift aid and should be paid through the student’s Banner account.

Awards/Prizes

Awards and prizes provided to WVU students are almost always considered additional gift aid. Departments conferring such gifts are responsible for notifying both Student Financial Services and Tax Services and must include the following information: the type of gift, the value of the gift, the student's name, and WVU ID. Whether the award/prize takes the form of cash, cash equivalents (e.g., gift cards) or non-cash items (e.g., electronic devices, laptops, iPads) it must be reported to Student Financial Services by submitting an online assistance request to the WVU Hub and notifying Tax Services via email. Awards and prizes are considered additional gift aid if the gift is restricted to students (includes both WVU students and students enrolled at other educational institutions).

Award or prize payments paid to any foreign national student is potentially subject to Alien Tax (ATAX) for those who are considered a nonresident alien for income tax purposes. Also, payments to foreign national individuals who are not a WVU student can be considered a violation of status depending on the payment. Departments should contact Tax Services before awarding either a WVU student or a non-WVU student who is a foreign national individual an award or prize to ensure that the individual is eligible to receive the payment without violation of their non-immigrant status and/or to determine if the payment would be subject to ATAX.

Human Subject Payments

Human subject payments are not considered a type of stipend regardless of whether the individual is a WVU student or an employee. Human subject payments are not reportable for financial aid purposes if participation is not restricted to only higher education students. If participation is limited only to WVU students, the payment must be reported to Student Financial Services as an additional form of gift aid.

For tax purposes, human subject payments are considered additional income by the IRS regardless of the dollar amount paid and the individual’s status (employee, student, or neither), and are potentially reportable by the University as Other Income in Box 3 on Form 1099-MISC, Miscellaneous Information, if reporting thresholds are met.

Non-Employment Compensatory Stipend Payments

For stipend payments that are for services rendered to the University and for which the University would be the primary beneficiary of any work product produced with any benefit to the individual being incidental but for which the situation would not be considered employment, payment should be made through PCPS. All such payments to individuals require an Independent Contractor Determination form to be submitted and approved before work starts. A Form 1099-NEC, Nonemployee Compensation, will be issued to report payments made to approved independent contractors when the payments equal or exceed a specified threshold, currently $600 during a calendar year.

Non-employment compensatory stipend payments paid to any foreign national individual are potentially subject to Alien Tax (ATAX) for those who are considered a non-resident alien for income tax purposes. Also, payments to foreign national individuals who are not a WVU employee or student can be considered a status violation depending on the payment. Departments should contact Tax Services prior to the commencement of any work by a non-WVU foreign national individual to ensure that the individual is eligible to receive the payment without violation of their non-immigrant status and/or to determine if the payment would be subject to ATAX.