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 (teaching, tutoring, advising) will have Teacher Retirement System (TRS) ramifications and must be processed via payroll as opposed to contracted services.  






For students, see Scholarship below


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.  Student employees are "workers."

Human Resource Services x6766


While a donor/sponsor may interchange the term "fellowship" with "scholarship," the disbursement mechanism is via Scholarship as detailed below. 


Graduate Contracts

 Grad contracts are a mechanism to pay wages.  The contract payments must be consistent over the contract period. 

If the payment of a grad student’s mandatory fees/health has been proposed and approved via a sponsored project, a Scholarship mechanism (see below) is used and payment follows the sponsored funding source of the grad contract.  If a sponsor doesn't’t allow the payment of fees/health insurance, these are the responsibility of the student (or department). 

Graduate School x2572

Teaching and Research Assistantship Contracts

Guest Speaker

See Honorarium / Contract Serv



Honorarium / Contract Service

Typically, payment for short-term services ($50-$1,000) to a non-UM employee who is a perceived professional in the field or other content authority, usually a non-UM student, for activities such as lecture, performance, advisory, or appearance as a special guest. UM interprets short-term (casual employment) as occurring up to three times (one day each time) in one academic year. This casual employment does not apply to payments that include reimbursement for travel as this must be treated as consecutive year engagement as detailed in the next paragraph. 

If consecutive year or multiple day engagement occurs, an individual will need to be hired as a temporary employee in order to comply with state and federal labor laws, unless they have an Independent Contractor's exemption with the State (approximately $125 for two years) or carry Workers' Compensation coverage. This determination must be made before the honoraria is entered into GrizMart with the accompanying documentation.

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. If paid from sponsored funds, honorarium represents short-term extra service pay for intra-institutional consulting that crosses departmental lines (2 CFR 200.430 (h)(3) - see extra compensation) or intra-departmental consulting (2 CFR 200.430 (h)(4)).  RPTs must be routed to ORSP for approval since prior written sponsor approval for extra compensation is required.

Business Services x2210

Human Resource Services x6766

Direct Payment via GrizMart as "Contract Services under $5,000" or "Contract Services over $5,000"

(Code = 62134)

UM employees paid via via U-Approve Request for Personnel Transaction

Human Subjects

(also referred to as research subjects, or subjects)

Human subjects (also referred to as research subjects, or 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. Human subjects differ from participants in that personal data is collected from human subjects. 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 (unless the IRB protocol design is anonymous). When part of externally-sponsored activities, such payments are assessed F&A unless the sponsor requires they be excluded.

Business Services x2210

Research & Sponsored Programs x6670

Payment of Human Subjects


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. Employees are paid through Human Resources. For others, see Participant Support Cost.

Financial Aid x5373

Human Resource Services x6766  


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 or paying for services) who participate in a University-sponsored activity. Participants differ from human subjects in that identifiable private information is neither collected from nor about participants and, for the purposes of payment, participants are never anonymous. Participants do not provide services in any form to the institution. The income tax consequences of 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.

Typically part of externally-sponsored activities, such costs are defined in 2 CFR 200.75 as "stipends or subsistence allowances, travel allowances, and registration fees paid to or on behalf of participants or trainees (but not employees) in connection with conferences, or training projects." 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 x2210

Human Resource Services x6766

Research & Sponsored Programs x6670

Participant Support Cost

(Code = 62868)

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 costs are not 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 x2210

Research & Sponsored Programs x6670 


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

Business Services x2210


While a donor/sponsor may interchange the term "scholarship" and"fellowship," the University identifies scholarships as funds typically given to UM students on a semester-by-semester basis to help defray tuition and related expenses (such as mandatory fees and health insurance, when allowable). 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, payment follows the funding source of the wages/stipend and such costs are excluded from F&A recovery. The financial aid and 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 = 62828)


Fee payments made to the School for Extended and Lifelong Learning (SELL) on behalf of enrollees are processed on journal vouchers.  If such fees are 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


See "Guest Speaker"


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 (including mandatory fees or health insurance, when allowable) are scholarships/fellowships, and those related to sponsored activities are paid via the scholarship mechanism.  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 x2210

Financial Aid x5373

Human Resource Services x6766 

Research & Sponsored Programs x6670 

Stipend Request Form

(Code = 62812)


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. 

Tuition Support

When sponsored activities allow tuition support, it is paid via a Scholarship as detailed above. 



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


The term waiver applies only to the reduction in tuition expenses, as tied to academic credit load. Waivers are not paid via sponsored funds; however, when allowed by the sponsor, Tuition Support is paid via a Scholarship as detailed above.

Financial Aid x5373

Financial Aid Waivers (paid by non sponsored funds)

If any links above are broken, please contact ORSP.