Are you Involved with Paying Stipends?

  • October 2nd, 2019
  • in News

If so, you may have lots of questions!  Here are some of the most common questions that we see on campus relating to stipends:

  • How do I process a stipend payment?
  • Is an independent contractor form required?
  • Which payment system should be used?
  • What procedures and documentation are required?
  • Is the stipend taxable?
  • Will taxes be withheld from the payment?
  • Will UA issue a tax reporting form to the recipient?
  • Is the payment includible in the recipient’s income for tax filing?

To each of these questions, the initial answer is, “It depends”. The payment process and the tax treatment will vary by situation, depending on WHO is receiving the payment and WHY the payment is being made. Stipends can be confusing, but the good news is, help is available!  WHEN you are planning to pay a stipend, the Stipend Matrix can help you determine WHERE to start and HOW to proceed.  For step-by-step guidance, please visit the Tax Office – Stipends website.