Miscellaneous Payments  

A prize is the result of entering a contest; an award is an amount received primarily in recognition of a special achievement. In both cases, the grantor does not specifically state how the money should be spent. 

For a U.S. Citizen, Resident Alien, and Resident Alien for U.S. tax purposes: 

• Reported to the IRS on the 1099-Misc, Miscellaneous Income form (use Natural Account 69455). 

Note: If the award is directly related to job performance, it must be processed through Payroll. 

For a Nonresident Alien for tax purposes: 

• Note that tax is withheld at 30 percent without regard to a tax treaty (use Natural Account 69456). 
• A non-U.S. person must be registered in the Glacier Tax Compliance Program. 
• Reported to the IRS on the 1042-S form.  

A scholarship, fellowship, or grant: 

• Is an amount given to an individual to aid in the pursuit of study, training, or research. 
• Cannot be a payment for services. 
• Involves the grantor’s specification of how the money is to be spent (to defray costs of study, training, or research). 

For a U.S. Citizen, Resident Alien, and Resident Alien for U.S. tax purposes: 

• Not reportable to the IRS. See Scholarship and Fellowship Accounts in Chart of Accounts.    

For a Nonresident Alien for tax purposes: 

• Reported to the IRS on Form 1042-S.  
• If eligible for a tax treaty benefit: 0 percent tax withheld 
• If not eligible for a tax treaty benefit: 
  • And individual is present in the U.S. under an F-1 or J-1 visa status: 14 percent tax is withheld 
  • All other visa status: 30 percent tax withheld 
• A non-U.S. person must be registered in the Glacier Tax Compliance Program.  

Participants are the recipients of the training envisioned by the grant or contract. Principal investigators, researchers, various assistants, trainers, or others needed to direct, assist, and carry out the project/training are not participants. 

For a U.S. Citizen, Resident Alien, and Resident for tax purposes: 

• Direct payments to participants. 
• Use natural account 61520, Participant Support (stipends). 
• Reported to the IRS on the 1099-Misc, Miscellaneous Income form. 

For a Nonresident Alien for tax purposes: 

For any participant support including travel, tuition and fees, housing, etc. given to a nonresident alien: 

• Use natural account 61560, Participant Support–NRA. 
• If eligible for a tax treaty benefit: 0 percent tax withheld 
• If not eligible for a tax treaty benefit 
  • And present in the U.S. under an F-1 or J-1 visa status: 14 percent tax withheld 
  • All other visa status: 30 percent tax withheld 
  • Reported to the IRS on the 1042-S Form. 
• A non-U.S. person must be registered in the Glacier Tax Compliance Program. 

Pertains to the specialized services provided to Rutgers by non-university individuals such as consultants. These individuals may be U.S. citizens or resident aliens, and for tax purposes, are either considered an individual, sole proprietor, association, or other non-incorporated entity. A nonresident alien also can provide independent personal service. 

For a U.S. Citizen, Resident Alien, and Resident Alien for U.S. tax purposes: 

• Use natural account 55080 Professional Services, Consultant. 

• Must provide SSN to Rutgers University before receiving payment. 

• Reported to the IRS on the 1099-NEC, Non-Employee Compensation form. 

For a Nonresident Alien for tax purposes: 

• Use natural account 55230, Professional Services–NRA. 

• If eligible for a tax treaty benefit: 0 percent tax withheld 

• If not eligible for a tax treaty benefit: 30 percent tax withheld. 

• A non-U.S. person must be in the Glacier Tax Compliance Program.

• If service provided by a nonresident alien is performed outside the U.S., there is no tax consequence. 

• Use natural account 55240. 

• A non-U.S. person performing service abroad (not coming to the U.S.) should not be in the Glacier Tax Compliance Program. 

An honorarium is a payment that functions as a token of appreciation to an individual for participation in a special—and typically nonrecurring—activity at a university event for which payment is not required. This method of payment is usually made as a “thank you.” 

Normally, an honorarium is given in conjunction with an academic activity. No honorariums should be paid to a university employee. 

For a U.S. Citizen, Resident Alien, and Resident Alien for U.S. tax purposes: 

• Use Natural Account 54130, Services Honoraria. 

• Must provide SSN to Rutgers University before receiving payment. 

• Reported to the IRS on the Form 1099-NEC Non-Employee Compensation form.

For a Nonresident Alien for tax purposes: 

• Use Natural Account 54140, Services Honoraria NRA. 

• If eligible for a tax treaty benefit: 0 percent tax withheld. 

• If not eligible for a tax treaty benefit: 30 percent tax withheld. 

• If service provided by a nonresident alien is performed outside the U.S., there is no tax consequence. 

• Use Natural Account 54150, Services Honoraria NRA Working Abroad. 

• A non-U.S. person performing service abroad should not be in the Glacier Tax Compliance Program.