Stipend Matrix – Participant Stipend

WHO is the recipient?	UA Employee	UA Student	Non-UA Individual
a. IC Form	IC Form not required	IC Form not required	IC Form not required
b. Payment Method	Accounts Payable / Concur Expense	Student Account Services / Payment to Student Form	Accounts Payable / Concur Invoice
c. Procedures & Documentation	EXPENSE REIMB ONLY – Follow Travel and Spending Policies¹	Payments to Student Policy	Participant Stipend Form / expense code 781222
d. Tax Withholding	None¹	None²	None²
e. Tax Reporting by UA	None¹	Treat as fellowship for tax purposes. Included in Form 1098-T recap of student account²	Treat as fellowship for tax purposes. No tax document is issued by UA²
f. Tax Reporting by Recipient	None¹	Generally includible in income. See IRS Pub. 970 for more info³	Generally includible in income. See IRS Pub. 970 for more info³

¹Generally, a UA employee participating in a program as learner or trainee would not receive a lump sum stipend, but would be eligible for expense reimbursement (for example, travel to attend a conference or workshop). Such reimbursements are not taxable – unless submitted late (60-day rule).

²UA is not required to withhold tax on fellowship payments for U.S. citizens or resident aliens. However, foreign nationals may be subject to tax withholding and their payments are reported on Form 1042-S

³Even if no tax document is issued by UA, the payment may still be taxable income to the recipient. The recipient is responsible for reporting these payments and remitting any tax due with his/her personal income tax return.