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Disbursement Guidelines for Payment to Students and/or Participants

Effective July 1, 2010

The purpose of this webpage is to provide institutional definitions and forms for the disbursement mechanisms below.

Note:  Except for wages, any funds paid to a UM student that are related to the student's status, MUST be routed through Financial Aid.  Additionally, funds paid to a non-University teacher providing services to the University will have Teacher Retirement System (TRS) ramifications and must be processed via payroll as opposed to contracted services.  

Mechanism

Definition

Contact

Form(s)

Award

For undergraduates, see "scholarship;" for graduate students, see "fellowship."

Employee

An employee is hired to personally perform work that is subject to the control of the employer, and receives training, tools, and equipment to complete assigned tasks that are periodically reviewed.  Payment to an employee, whether cash or noncash, is taxable income and subject to withholding rules and contributions.

Human Resource Services x6766

Fellowship

While a donor/sponsor may interchange the term "fellowship" with "scholarship," the University identifies fellowships as funds typically given to UM graduate students to help defray tuition and related expenses, or to postdoctoral scholars.  While an expectation of services may exist solely to advance an educational experience, such funds are not compensation for any performance (e.g., employment).  When paid from sponsored funds, such costs are excluded from F&A recovery. The income tax consequences of fellowships are entirely the responsibility of the individual. 

Financial Aid x5373

Research & Sponsored Programs x6670 

Financial Aid Non-Grant: Scholarship Award Summary Sheet

Grant: Sponsored Programs Payment of Awards to Students

Guest Speaker

See "Honorarium" 

 

 

Honorarium

Typically, payment for services to a non-UM employee who is a perceived professional in the field or other content authority, typically a non-UM student, for activites such as lecture, performance, advisory, or appearance as a special guest.  The income tax consequences of honorarium are entirely the responsibility of the individual. If $600 per year or more is paid, it is IRS-reportable by the University.  If an honorarium is paid to a UM employee, it is processed through payroll and treated as taxable wages.  

Business Services x2195

Human Resource Services x6766

Direct Payment via GrizMart

Extra Compensation Request Form 

(Code = 62134)

Human Subjects
(also referred to as research subjects, or subjects)

Human Subjects (also referred to as research subjects, or subjects):  Human subjects are living individuals about whom an investigator (whether professional or UM student) is conducting research by obtaining either (1) data through intervention or interaction with the individual, or (2) identifiable private information. The income tax consequences of human subjects payments are entirely the responsibility of the individual.  If a participant is paid $600 per year or more, it is IRS-reportable by the University.  When part of externally-sponsored activities, such payments are excluded from the Facilities & Administration recovery when required by the sponsor.

Research & Sponsored Programs x6670

Business Services x2195

Human Subjects Payment

If no Informed Consent, pay via Participant Support Cost

Incentive

Generally, payment for a satisfactory completion of a program or other identified activity unrelated to employment.  The income tax consequences of incentives are entirely the responsibility of the individual. UM students are paid through scholarships or fellowships. Employees are paid through Human Resources. For others, see Participant Support Cost.

Financial Aid x5373

Human Resource Services x6766  

Internship

Whether paid, unpaid, or otherwise compensated, there is an expectation that the UM student receiving an internship will perform some service or work.  If paid, compensation is typically processed as taxable wages. 

Internship Services x2815

Human Resource Services x6766 

Forms link from respective websites

Participant Support Cost

Payment to individuals (flat allowance to defray participation costs as opposed to reimbursing expenses) who participate in a University-sponsored activity. Participants do not provide services in any form to the institution. The income tax consequences of program participant payments are entirely the responsibility of the individual.  If a participant is paid $600 per year or more, it is IRS-reportable by the University. If participants are non-US citizens, conversations with the HRS Foreign National Specialist must occur. When part of externally-sponsored activities, such payments are necessary to achieve an approved scope of work. When paid from sponsored funds, such costs are not assessed F&A. 

Business Services x2195

Human Resource Services x6766

Research & Sponsored Programs x6670

Participant Support Cost

Program Participant Cost

Payment made by a department directly to a vendor or similar entity on behalf of participants in meetings, conferences, symposia, workshops, etc. (e.g., hotel, registration fees, travel allowances, manuals, supplies). If meal expense, code to 62817 Meetings & Conference Costs.  When part of externally-sponsored activities, such payments are assessed F&A.

On rare occasions, if advances are required on behalf of participants (e.g., meal allowances, ground transportation, entrance to events), see Exceptions under Travel on Sponsored Agreements.  

Business Services x2195

Research & Sponsored Programs x6670 

Reimbursement

Amount paid to individuals for business-related expenses.   Such payments are not taxable.

Business Services x2195

Scholarship

While a donor/sponsor may interchange the term "scholarship" with "fellowship," the University identifies scholarships as funds typically given to UM undergraduates on a semester-by-semester basis to help defray tuition and related expenses.  While an expectation of services may exist solely to advance an educational experience, such funds are not compensation for any performance. When paid from sponsored funds, such costs are excluded from F&A recovery. The income tax consequences of scholarships are entirely the responsibility of the individual.

Financial Aid x5373

Research & Sponsored Programs x6670

Financial Aid Non-Grant: Scholarship Award Summary Sheet

Grant: Sponsored Programs Payment of Awards to Students

(Code = 62826)

SELL

Payments made to the School for Extended and Lifelong Learning (SELL) behalf of enrollees are processed on journal vouchers.  If paid by grant funds, these are routed to ORSP; if non-grant, they are sent to Business Services.  The respective fund accountant will send a copy of the attendee list to Financial Aid. 

Research & Sponsored Programs x6670

Business Services x6260

Speaker

See "Guest Speaker"

Stipend

Stipend refer to payment(s) issued to UM students by the University to cover living expenses (e.g., rent, food) and is not tied to any service or employment.  Non-living expenses fall under different definitions; for example, academic expenses are scholarships / fellowships, and those related to sponsored activities fall under scholarships / fellowships or reimbursement.  Stipends are taxable, and if $600 per year or more is paid, it is IRS-reportable by the University.  If payment is made to a non-UM student, refer to participant support cost.  If individual is an employee, HRS must be contacted for determination. When paid from sponsored funds, such costs are excluded from F&A recovery.  

Business Services x2195

Financial Aid x5373

Human Resource Services x6766 

Research & Sponsored Programs x6670 

Stipend Request Form

(Code = 62812)

Subsistence

A payment made to cover living expenses (e.g., rent, food) for either UM students or non-students paid directly to an individual by an outside agency. Subsistence payments are taxable unless specifically excluded by law; therefore, the income tax consequences of subsistence payments are entirely the responsibility of the individual, and may be IRS-reportable by the agency.  Similar payments made by the University are paid as stipends.  When paid from sponsored funds, such costs are excluded from F&A recovery. 

Volunteer

Individual who performs hours of service for The University of Montana - Missoula for civic, charitable, or humanitarian reasons.  These services are performed without promise, expectation, or receipt of compensation for services rendered.

Human Resource Services x6766

Environmental Health and Risk Management x2700

Volunteer Workers Policy and Procedures

Volunteer Agreement

Waiver

The term waiver applies only to the reduction in tuition expenses, as tied to academic credit load.  If fees are included, the activity will fall under scholarship/fellowship.

Financial Aid x5373

Research & Sponsored Programs x6670

Financial Aid Tuition Waivers 

Sponsored Programs Payment of Awards to Students 


If any links above are broken, please contact ORSP.