Employment compensation for services rendered
The following questions may be considered to determine if a payment to a student is considered employment compensation for services rendered. If the answer is “yes” to any of the questions, the payment is considered employment related and will need to be processed through Human Capital Services Payroll.
- Does and employee/employer relationship exist?
- Does the department directly control what services this person will do and how it will be done and is it part of the regular business activity of the University?
- Would the individual be subject to University personnel policies, discharged at the University’s discretion, and payments only made for services already rendered?
Payment is considered wages and reported on Form W-2. Any wages reported to the student on a W-2 is reported as income on the student’s Financial Aid application (FAFSA) for the next academic year.