Participant Stipend versus Fellowship: Comparison Table

The following table details the differences between a participant stipend and a fellowship:

Note: Payments to fellows are often referred to in a grant as stipends. Participant stipends are support payments made to individuals who participate in an event and should not be confused with payments intended for fellows.

Participant Stipend

Fellowship

Paid in the Oracle Accounts Payable module

Paid in the Oracle Human Resources module

Not related to an Academic Endeavor

Related to an Academic Endeavor

Non-Wage support

Award

No real wage just the expectation that the participant be present at some event

No expectation of service. May have research obligations.

Taxes for US Citizens, Permanent Resident and Resident Alien Participant Stipends:

  • 1099-MISC Reportable as Other Income
  • Supplier File set up -- Separate Site set up for 1099
    Supplier with reporting information
  • Information flows from the Supplier file to invoice that is
    created in Accounts Payable module for payment to be generated
  • Can be changed at the invoice level if the particular payment is not tax reportable

     

Taxes for US Citizens, Permanent Residents and Resident Alien Fellows:

  • Not taxed or reportable by the Research Foundation (RF)
  • RF sends "Payment Reporting Letter" at year end to individual for tax purposes
  • Reporting Determination - Individual must determine if reportable and taxable on individual tax return

     

Taxes for Nonresident Alien Participant Stipends:

  • 1042-S Reportable
  • Supplier file set up -- Supplier Type code should indicate NRA status
  • Withholding Groups for percentage of withholding in Tax Withholding Alternative region (if applicable.)
  • Information flows from the Supplier file to the invoice that is created in the Accounts Payable module for payment to be generated and withholding to be automatically calculated and withheld

     

Taxes for Nonresident Alien Fellows:

  • 1042-S Reportable, taxable and non-taxable portions
  • Paid by elements (e.g.Stip Fel NQual).
    Taxable payments require second element (FIT NRA NQual Fel) for automatic withholding

Forms Needed :

  • Nonresident Participant Stipend Tax Exemption Certificate (PDF)
  • Participant Stipend Form (PDF)

Forms Needed:

  • Nonresident Alien Fellowship Tax
    Exemption Certificate (PDF)
  • Academic Fellowship Form (PDF) (Word)

Change History

 

 

Feedback
Was this document clear and easy to follow? Please send your feedback to webfeedback@rfsuny.org.

Copyright © 2011 The Research Foundation of State University of New York