Prizes and Awards
Definition
A reward or gift of money for success in competition, for past services rendered, or other scholastic achievement.
Payments to Employee
Prizes and service award payments to a University employee such as, but not limited to, employee of the month, etc., must be processed through Workday as a One-Time Payment. These payments will be taxed, and the dollar amount of the prize or award will be included on the employee's IRS Form W-2, Wage and Tax Statement, at calendar year-end. Gifts to employees made in accordance with University Financial Policy 1211, Gifts Based on University/Employee Relationships will not be taxed.
Payments to Students who are U.S. Citizens or Permanent Residents
Prize and scholastic award payments that are not for services rendered to students who are either U.S. citizens or permanent residents will be reported on Form 1099MISC at calendar year-end.
Required Payment Forms
Payments to U.S. Citizens
Submit through the ServiceNow Portal
IRS Form W-9, Request For Taxpayer Identification Number
Payments to Permanent Residents
Submit through the ServiceNow Portal
IRS Form W-9, Request For Taxpayer Identification Number
Copy of Permanent Resident or Resident Alien card or copy of the I-551 Stamp that is printed on the applicant's passport
Payments to Students who are Foreign Nationals
Prizes and scholastic awards that are "not for services rendered" issued to nonresident alien students will be reported on an IRS Form 1042S at calendar year end. According to IRS regulations, 30% tax withholding will be deducted from each payment. In order to issue a payment, the student must have the appropriate visa classification. You can view the USCIS Classification Matrix at this link.
Required Payment Forms
Submit through the ServiceNow Portal
IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding
Form UPP-192, Alien Determination of Residency Form
Based on VISA type, foreign students and individuals will also required to provide copies of various USCIS and other documents (See Required Documents for Foreign Individuals)