Participant Stipends Processing

Overview

Payments of participant stipends will be made through the Accounts Payable module. Participation stipends include payment for participation in vocational training, secondary school training, and other nonacademic programs.

Requirements

The participant must be on the Supplier file. A citizen or resident alien must have a 1099 Supplier site. Nonresident aliens are identified through the Supplier Type field. Withholding groups are used to process tax withholdings for a nonresident alien. The withholding group is attached to the supplier record and flows to the invoice. Taxes are automatically calculated in the Accounts Payable module.

How to Process a Participant Stipend

Follow this procedure to process a request for payment of a participant stipend:

Step	Action
1	Query the Supplier file to see if the participant exists. If the participant does not exist in the Supplier file, request that the supplier be added to the Supplier File. Refer to "Supplier File Updates" for more information.
2	Enter the invoice information into the Accounts Payable module. The invoice can be entered in one of the following ways: Load a standard invoice each time you want to make a payment to the stipend for the dollar amount you want to issue and approve it when entered. Load a standard invoice for a total dollar amount to be paid to the stipend and approve that invoice. Open the Schedule of Payment form and specify the scheduled payment dates and amounts to be paid. Once this has been set up, separate approvals are not necessary prior to issuing each payment. Load a recurring invoice for a set dollar amount to be paid to the stipend on the first of each month. Enter a monthly payment amount and the number of payments up to 12. Each month thereafter a recurring invoice will be created. The recurring invoice will need to be queried and approved each month prior to issuing a payment.
3	Checks for approved invoices will be generated when central office performs the payment run process.

Recordkeeping and Monitoring

Recordkeeping

Operating locations must retain all supporting nonresident alien tax exemption documentation for four years after the end of the last year that the exemption was claimed.

Monitoring

Tax status of nonresident aliens must be monitored to ensure that a person claiming a tax exemption is still eligible for exemption.

Change History

January 19, 2001 - New document.

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