Scholarships, Stipends, Fellowships, Honoraria: Essential 1099 and 1042-S Reporting and Tax Withholding Compliance | Product

Does your institution make payments through Accounts Payable to students, instructors, researchers and academic visitors?  Internal procedures might identify a payment as a stipend or honorarium, fellowship, grant or scholarship – but what these have in common in tax compliance is a set of specific regulatory requirements which will determine whether payments are subject to tax withholding and the filing of a Form 1099 or 1042-S to the IRS.  This presentation will address the primary rules for these payments; when they must be treated as wages; when non-wage tax withholding is required; whether they’re subject to reporting on Form 1099 or Form 1042-S; and when no reporting at all is required.

Learning Objectives:

• Distinguish among scholarships, fellowships, non-employee compensation and wages
• Identify the different documentation, tax withholding and reporting requirements applicable based upon whether the recipient is a U.S. person for tax purposes or nonresident alien individual