Other student payments
In some cases, a payment may be made to a student in the form of a “stipend”, an honorarium or as a prize or award. Treatment of each of these is outlined below.
- A “stipend” is another term for a payment. It is important to understand the intent and the circumstances for a student receiving a stipend in order to determine if the stipend is employment compensation, an educational award or payment for non-employment services rendered.
- An honorarium is a gratuitous payment of money to a person for their participation and facilitation in an academic activity for which no fee is legally required to be paid. It is provided as a token of appreciation for the individual’s participation and contribution to the activity or event and not as a contractual obligation to pay for services rendered.
- A student may receive a prize or an award for recognition of religious, charitable, scientific, educational, artistic, literary, civic achievement or as the result of entering a contest. Generally prizes and awards are paid through Accounts Payable and reported on form 1099-Misc if the total award is $600 or greater. If the student is an employee, the prize or award would need to be evaluated to determine if it should be processed through Human Capital Services Payroll as employee compensation. If restrictions related to the students educational achievement or participation are placed on the prize or award, it would be considered a scholarship and should be awarded through the Office of Financial Assistance.