Payroll Services Scholarships and Fellowships

Scholarships

An amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or graduate, to aid such individual in pursuing his/her studies. Scholarships are awarded to WSU matriculating students based on need and/or merit (non-periodic payment). There is no expectation of prior, current or future service/effort. Scholarship amounts do not represent payment for teaching, research, or other services by the recipient required as a condition to receiving the qualified scholarship. All scholarships to matriculating students are processed through Financial Aid and Student Account offices. Scholarships are counted toward a student’s total financial aid package. See withholding and reporting requirements for scholarships and fellowships and Section 30.90 of the Policies and Procedures Manual. Also see IRS Publication 970.

Fellowships

An amount paid or allowed to, or for the benefit of, an individual (non WSU matriculating student) to aid him/her in the pursuit of study or research (periodic payment). There is no expectation of prior, current or future service/effort (non-wage). No services are required of the recipient of the fellowship. Example: non-student post doctoral research fellows. Fellowship payments to US Citizens and resident aliens are reportable on Form 1099. Fellowship payments to non-resident aliens are reportable on IRS Form 1042S and may require withholding, provided no treaty benefits exist. See withholding and reporting requirements for scholarships and fellowships and Section 30.30 of the Policies and Procedures Manual.