| Effective Date: |
July 20, 2012
|
|---|---|
| Last Revised Date: |
June 5, 2018
|
| Responsible Unit(s): | |
| Responsible Unit Email(s): | |
| Manual: | |
| Status: |
Active
|
Purpose and Summary
To describe the method of processing fellowship awards for postdoctoral fellows.
NOTE: Payments to nonresident aliens are governed by policy FPM 6.4 Payments to Nonresident Aliens, which contains detailed information about payments allowed and documentation required. Refer to policy FPM 6.4 before payment is made to or on behalf of a nonresident alien as some visa types do not allow payments. For additional details on specific situations please contact Tax Services.
Scope
This procedure applies to all University locations and units, including all University extensions, satellite locations, and off-site campus units, both domestic and international.
Definitions
- Postdoctoral Fellow: A person professionally working after the completion of their doctoral studies, as a part of a temporary academic appointment, in preparation for an academic faculty position.
- Award: Generally, an amount paid or allowed to, or for the benefit of, a student at an educational institution to aid in the pursuit of his or her studies (IRS Publication 970 (2016), Tax Benefits for Education). The Internal Revenue Code further indicates that any such payment may not represent compensation for personal services. Can also be referred to as a grant, scholarship, or stipend.
Procedures
- Select an award recipient according to the guidelines of the award(s).
- Prepare a disbursement voucher for each postdoctoral fellow and include the following additional information in the notes and attachment section:
- Total number of payments
- Amount of each payment
- Disbursement dates
- Total amount of all payments combined
- Obtain appropriate departmental/college level approvals for each disbursement voucher.
- Submit the disbursement voucher for processing.
- Payment will be distributed via mail or ACH, as indicated by the initiator.
Please note that the following sections are provided solely for the convenience of users and are not part of the official policy.
Frequently Asked Questions
- Where can I find more information regarding the taxability of payments received as a postdoctoral fellow?
Employees of the University are prohibited from acting as tax consultants or providing tax advice, however, the following is meant to provide general guidance as well as links to additional information.
Postdocs receiving payments for services will be paid via payroll and are subject to payroll taxes and will not be processed as a DV. Payments not subject to automatic tax withholding may still be taxable to the recipient. For more information, please see Understanding Payroll Taxes.- Information regarding withholding and making estimated tax payments may be found in IRS Publication 505 – Tax Withholding and Estimated Tax.
- U.S. citizens and resident aliens may find guidance regarding the potential taxability of payments received in IRS Publication 970 – Tax Benefits for Education.
- All payments to nonresident aliens are potentially subject to withholding and are addressed in FPM 6.4 Payments to Nonresident Aliens.
- Whom can I contact if I have questions regarding processing a disbursement voucher?
Please contact Accounts Payable at 520-621-9097 or FNSV-Accounts-Payable@arizona.edu