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:  If a UM student receives tuition, personal items, or other funds (excluding wages) that are of personal benefit - as opposed to benefiting their research activity, these 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.  

Disbursement type: A-G | H-O | P-R | S | T-Z

Disbursement Guidelines






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 insurance 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 the grad contract is paid by more than one source, the fees/health insurance (and sometimes tuition) cost will be split in the same proportion as the grad contract. If a sponsor doesn'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

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See Honorarium / Contract Service



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 typically processed through payroll as extra compensation 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 - see Institutional Review Board for the Protection of Human Subjects)

Human subjects are participants about whom an investigator (whether professional or UM student) is obtaining personal data (1) through intervention or interaction with the individual, or (2) containing identifiable private information. Human subjects do not personally benefit from participation.  Compensation/incentives for time and inconvenience may include cash, checks, or non-cash items, as consistent with the approved IRB protocol.

The income tax consequences of human subject 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

Sponsored Programs x6670

Payment of Human Subjects

(Code = 62868A)


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 (see below). Employees are paid through Human Resources. For others, see Program Participant Support below.

Financial Aid x5373

Human Resource Services x6766  



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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 

Participant support is provided to individuals attending a conference or educational/training activity. Participant support may only be provided to attendees or trainees who are not employees. Such costs may include, but are not limited to, registration fees, travel allowances, manuals, supplies, stipends, tuition, and other costs associated with supporting the expense of attending such events. (2 CFR 200.75) Program participants personally benefit by attending the conference/training, and do not perform work or services for the project/program or University. If meal expense is paid to a vendor, code to 62817 Meetings & Conference Costs.

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

If participants are UM students and they receive:

  • tuition or personal items that they keep as part of an approved scope of work (e.g., books, electronic devices, or other supplies), payment is processed via a Scholarship (see below); or 
  • a stipend, payment is process via a Stipend (see below).  

If a program participant payment is a flat amount and made directly to an individual, the income tax consequences are entirely their responsibility.  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 paid from sponsored funds, such costs are not assessed F&A. 

Business Services x2210

Sponsored Programs x6670 

Participant Support Cost

(Code = 62868)

If there is an associated UM IRB Approval number, see Human Subjects above.


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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) and can include personal items that they keep as part of an approve scope of work (e.g., books, electronic devices, or other supplies). While an expectation of services may exist solely to advance an educational experience, such funds are not compensation for any performance. The financial aid and income tax consequences of scholarships are entirely the responsibility of the individual.

When paid from sponsored funds, payment follows the funding source of the wages/stipend and such costs are excluded from F&A recovery. 

Financial Aid x5373

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 UM students are processed on journal vouchers.  If such fees are paid by grant funds, these are routed to OSP; if non-grant, they are sent to Business Services.  The respective fund accountant will send a copy of the attendee list to Financial Aid. 

Sponsored Programs x6670

Business Services x6260



See "Guest Speaker"




Stipend refers 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. 

When paid from sponsored funds, such costs are excluded from F&A recovery.  

Business Services x2210

Financial Aid x5373

Human Resource Services x6766 

Sponsored Programs x6670 

Stipend Request Form

(Code = 62812)


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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 to UM students are paid as Stipends (see above).

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. Tuition may be part of a Grad Contract when allowable. 

If the tuition support is paid by more than one source, it will be split in the same proportion as salary support.  




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


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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)