POLICY ON PAYMENTS TO STUDENTS

The purpose of the Policy on Payments to Students is to clarify how to categorize payments made to students in support of their education-related activities, for scholarships, fellowships, stipends, internships, compensation for services, and prizes and awards. The policy addresses payments made to undergraduate and graduate students currently enrolled at Wesleyan.   

Use Wesleyan's Payments to Students Flowchart to categorize a payment.  A completed Student Payment Voucher Attachment, and additional detail as noted, MUST accompany a WFS voucher.  The flowchart and voucher attachment are intended as a guide, and may not be inclusive of every type of payment to a student.  Final determination and taxation of a student payment is dependent upon the facts and circumstances of the specific case.  

The reporting of student payments is governed by the Internal Revenue Code (the "Code") and Treasury Regulations are enforced by the IRS.    

IRS Publication 970, Tax Benefits for Education, explains the tax rules for determining 1) when a payment is a scholarship or fellowship payment, 2) the various types of payments typically treated as non-compensatory grants, and 3) when a non-compensatory grant can be excluded from income.  Students can find a summary about the taxation of their scholarships, fellowships, and stipends, as well as additional resources, here.  

Reimbursements to Wesleyan students are not allowed for the following:
Students are not allowed to pay for the services of or rental fees for an individual or entity that is not incorporated and then seek reimbursement.  Wesleyan is required to report payments for services and rentals to the IRS on Form 1099 (non-employees) or Form W-2 (employees).  All services contracted/rentals for the University must be paid directly to the individual or company in accordance with this policy.  Some examples of these types of payments include, but are not limited to:

  • Guest Speakers
  • Performers
  • Research Assistants
  • Transportation Rentals, such as bus rentals
  • Printing Services from vendors such as Minuteman Press
  • Rented Equipment from vendors like Ace Music and Audio, LLC
  • Bicycle Tune-ups from vendors like Pedal Power, LLC
  • Boat Repairs from vendors like Island Cove Marina, LLC
  • Apartment Rental Payments to Landlords