The University of Chicago

Financial Services

  

Prizes and Awards

Definition

A reward or gift of money for success in competition, for past services rendered, or other scholastic achievement.

Payments to Employee

Prizes and Service Award payments to a University employee such as, but not limited to, employee of the month, etc. must be processed thought Workday as a One-Time Payment. These payments will be taxed and the dollar amount of the prize or award will be included on the employee's IRS Form W-2, Wage and Tax Statement, at calendar year end. Gifts to employees made in accordance with University Financial Policy 1211, Gifts Based on University/Employee Relationships will not be taxed.

Payments to Students who are U.S. Citizens or Permanent Residents

Prize and Scholastic Award payments that are not for services rendered to students who are either U.S. citizens or Permanent Residents will be reported on Form 1099MISC at calendar year end.

Required Payment Forms

Payments to US Citizens

  1. Submit through ePayment 
  2. IRS Form W-9, Request For Taxpayer Identification Number

Payments to Permanent Residents

  1. Submit through ePayment 
  2. IRS Form W-9, Request For Taxpayer Identification Number
  3. Copy of Permanent Resident or Resident Alien card or copy of the I-551 Stamp that is printed on the applicant's passport

Payments to Students who are Aliens (Non-U.S. Citizens)

Prizes and Scholastic Awards that are "not for services rendered" issued to  nonresident alien students will be reported on an IRS Form 1042S at calendar year end. According to IRS regulations, 30% tax withholding will be deducted from each payment. In order to issue a payment the student must have the appropriate visa classification. Click here to view web USCIS Classification Matrix.

Required Payment Forms

  1. Submit through ePayment 
  2. IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding
  3. Form UPP 192, Alien Determination of Residency Form
  4. Based on VISA type, foreign students and individuals will also required to provide copies of various USCIS and other documents (See Required Documents for Foriegn Individuals)

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