Educational Student Stipend Policy #313

Policy #313 Approved: April 8, 2013
Educational Student Stipend Policy
Policy #313
Source of Authority:

N.C.G.S. § 116-34(a)
UNC Code § 502(A)

Revision Authority: Chancellor
History: First Issued: April 8, 2013
Related Policies:

Accounts Payable Policy #301

Responsible Offices: Controller's Office
Effective Date: April 8, 2013

I.            Purpose

The purpose of an Educational Stipend is to support and enhance the overall student educational experience.  It is not the purpose of an Educational Stipend to fully compensate students for all their contributions, and stipends are not considered wages.  Students receiving stipends are not considered employees of the University for any purpose, including the Fair Labor Standards Act, minimum wage law, or any other law or policy.  The relationship between the University and students receiving a stipend is that of university and student and not of employer and employee.

II.            Scope

This policy applies to all departments utilizing educational stipends to support students as well as the students receiving stipends.

III.            Definitions

A.  “Stipend” is defined as a fixed sum of money paid periodically for services or to defray expense.

IV.            Policy

A.  Student Stipend Payment

1.  Only enrolled students in the University are eligible to receive a student stipend.

2.  Student stipends are the fiscal responsibility of each department. Each department is responsible for ensuring that the student(s) meet(s) all the requirements of receiving a stipend.

3.  Departments should use the student stipend to pay students who are taking part in a one-time event or who are being paid to perform a particular task that is closely tied to the university’s educational program and is designed to enhance the overall educational experience. Students who are engaged in hourly work with limited educational value and which does not directly relate to the university’s educational program are temporary employees to whom the Fair Labor Standards Act (FLSA) and North Carolina Wage and Hour Act regulations apply.

B.  Taxes

1.  As a general rule, payments to students for stipends are taxable income to the recipient unless specifically excluded from taxable income by the IRS.

2.  A 1099 (Miscellaneous Income) form will be issued for compensation to an individual in excess of $600.00 per calendar year.

V.           Revision History

1.   April 8, 2013: Adopted by the Chancellor

 University of North Carolina School of the Arts
Educational Student Stipend Procedures
Procedure # 313

I.  Processing Student Stipend Payments

A.    In order to process a student stipend payment, the “Student Stipend” form must be completed and signed by all parties.

B.    The “Student Stipend” form requires the following information:

  1. Name of the enrolled student;
  2. The mailing address for the payment, if necessary;
  3. Work description;
  4. Date(s) of work;
  5. Banner information;
  6. Payment amount;
  7. Signatures of student and student’s supervisor.

C.  The Student Stipend Form should be completed and approved by the appropriate dean or department head.

D.  The form must be attached to a direct pay request and submitted for payment to Accounts Payable.

E.  If the student is not in Banner, a vendor form must be completed and submitted to the Purchasing Department. Note: This is rare; all enrolled students should already be assigned Banner ID numbers. If not in banner, you may need to verify student’s eligibility.