Student Payment Guidelines

Dartmouth College faculty and staff should use this document to determine which method of student payment is appropriate for student employees, interns, fellows, performers and others. The offices of Student Employment, the Controller, General Counsel, Accounts Payable and Human Resources have prepared this document after review of the Federal Fair Labor Standards Act.

Contents

When the payment to a student is for work performed (student employment)
When the payment to a student is not for work performed
Definitions of frequent terms for student payments
Which method of payment to use when compensating, awarding or reimbursing students

When the payment to a student is for work performed (student employment)

All payments for work performed are processed by Dartmouth College Payroll. As a general rule, all students employed by Dartmouth College are expected to be paid hourly using the biweekly pay schedule. This is always true when either of the following criteria is met:

  • The amount of time working can be tracked
  • The amount of time working can be verified

In cases where independent work (work that is done in an unsupervised manner or location) is being performed, it is critical that the student employee track their time spent doing the work and record it with accuracy (e.g. research conducted off-site).

There are very few generally accepted exceptions to hourly pay for student employment. They include:

  • The position is a creative endeavor or artistic in purpose/nature (e.g., DJ, performer/entertainer, writer, graphic artist)
  • The position’s primary duties are considered ‘on-call’, unpredictable, or ad-hoc (e.g. Undergraduate Advisor, Camp Counselor, DOSC, Peer Advisor, Dartmouth EMS, Campus-Events Listserv manager)

For more information, or to discuss specific cases, please call or contact the Student Employment Office.

When the payment to a student is not for work performed

These payments are processed by a Finance Center through Accounts Payable. The most common examples are listed here:

  • Structured, merit- and academic-based research scholarships, grants, and fellowship programs are considered educational learning opportunities rather than employment. Examples include programs such as the Sophomore Science Scholars, Junior Research Scholars, Presidential Scholars, and Mellon Mays Undergraduate Fellows. Use the Payment Request eForm.
  • A student has been awarded Dartmouth funds for career exploration purposes, where the activity is for the benefit of the student’s experience. Examples include off-term funding offered by the Rockefeller Center, Institute for Security, Technology & Society (ISTS) Dickey, Tucker Foundation and Career Services to support a student in pursuing off-campus career exploration experiences. Use the Payment Request eForm.
  • A student is conducting Dartmouth College activities or business and requires reimbursement or an advances. Use the Payment Request eForm.
  • A student receives an award or prize to honor his/her achievement. Use the Student Prizes & Awards eForm.

Definition of terms for purposes of Payment for students

The following are definitions for terms commonly used when determining appropriate payments  

Fellowship: A fellowship is an opportunity to pursue study or research typically outside of the enrollment in an academic program. Funds received to support participation in fellowships are typically paid with a stipend. In some cases, academic credit is awarded for successful completion of the fellowship, for example, the Senior Fellows.

Honorarium: An honorarium is a payment made to a guest or other non-Dartmouth employee. An honorarium payment is a modest gesture of appreciation for the individual’s efforts of preparing and performing a service without expectation of payment. An honorarium payment may be of any amount and is taxable income to the recipient.

Internship: An internship is a structured opportunity of fixed duration that provides training and experience to benefit the educational efforts of the student. Internships may take place at the student’s educational institution, or at an outside organization. Internships may be full or part-time, and may be paid or unpaid positions.

Lump-sum: A lump sum is a single payment of money, as opposed to a series of payments made over time.

Prizes and Awards: The College makes available a wide range of prizes and awards to its students in recognition of academic excellence or achievement. Historically, the terms “prize” and "award" have been used by departments for payments distributed to students during the academic year, most notably at Commencement. The recipient may receive a monetary and/or a tangible prize.

Student recognition by Dartmouth College departments for academic achievement is considered a prize by the IRS, e.g. best design, highest score, academic achievement, best thesis, etc. or winnings from a raffle or drawing.

Scholarship: A scholarship is an amount of money given to defray costs typically associated with enrollment in an academic program. This may be awarded to either an undergraduate or a graduate student.

Stipend: A stipend is a fixed sum of money paid periodically for services, to defray expenses, or provide an allowance.

Volunteer: A volunteer contributes time, effort and talent without any expectation of present or future salary, wages or benefits, and without any coercion or intimidation.

Students may provide service as volunteer to Dartmouth College because it is a nonprofit organization. Typically, student volunteers should be involved with scholarly activities with faculty, such as research, involved with co-curricular centers and organizations, such as, the Rockefeller Center and the Dickey Center, and with extra-curricular activities, such as the Collis Center for Student Involvement, the Tucker Foundation, and the Dartmouth Outing Club. The volunteer’s principle contribution should blend the student's interests with the needs of the faculty member or organization with which the student is volunteering.

Work: Work is providing a service for which one earns compensation. There is an employee-employer relationship where the employer controls the time, place, scope of what’s done and how it’s done, and the activity is for the benefit of the employer.

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Which method of pay to use when compensating, awarding or reimbursing students

If your student… Examples This is what you do: Natural Class to Use Tax Forms: (all sent directly to the student)
Is an hourly student employee

Has a temporary or ongoing position within a campus department or program

Is hired to perform a specific service to the College
Library Assistant Research Assistant Tutor
A/V Tech Assistant
Office Assistant Programming Assistant
Student Director Building Manager Dining Associate
Student will record their hours biweekly, using the appropriate timekeeping method in their department. 6262 – Undergraduate students
6261 – Graduate students
(Payroll automatically re-assigns the natural class, if needed, when processing timesheets.)
Students who have received paychecks will be sent IRS Form W-2 by January 31 for the preceding calendar year.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year.
Is hired in a position where there is an accepted exception to hourly paid employment (creative endeavor or artistic in purpose/nature) DJ or entertainer hired to perform at a specific event
Writer
Graphic artist
Pay the student through Payroll. Work with the Student Employment Office to request a lump-sum payment for student.

These are almost always a one-time payment.
6262 – Undergraduate students
6261 – Graduate students
(Payroll automatically re-assigns the natural class, if needed, when processing timesheets.)
Students who have received paychecks will be sent IRS Form W-2 by January 31 for the preceding calendar year.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year.
Is hired in a position where there is an accepted exception to hourly paid employment (primary purpose is advising, mentoring, 'on-call') EMT
Undergraduate Advisors Orientation Assistants Camp Counselors
Pay the student through Payroll. Work with the Student Employment Office to request a lump-sum payment for student.

These payments can be 'one-time' or more frequently, as determined by manager.
6262 – Undergraduate students
6261 – Graduate students
(Payroll automatically re-assigns the natural class, if needed, when processing timesheets.)
Students who have received paychecks will be sent IRS Form W-2 by January 31 for the preceding calendar year.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year.
Is a Undergraduate student with a position that qualifies for a stipend payment Sophomore Science
Scholars
Junior Research Scholars Presidential Scholars Mellon Mays
Undergraduate Fellows
Undergraduate Research
Grants

Use the  Payment Request eForm, select Dartmouth Student and Other Payment. The payment will be processed through Accounts Payable See  Definition of Terms to determine what type of payment this is, then use the corresponding Natural Class.
7002 – Internships
7005 – Pre-doctoral Fellowships

Contact your Finance Center with questions
An award may or may not be considered taxable income.

Please refer students to IRS Publication 970 for detailed information on the taxability of awards (available on the  IRS website).

Students may also consult with a tax professional or call the IRS help line at 1-800-829-1040 (tell student to explain that the question pertains to a stipend or grant payment issued to them by their college so that the IRS can direct the student to the appropriate person.)

Dartmouth College cannot determine whether an individual's award is subject to tax.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year. Any awards paid to non-residents may be subject to federal income tax withholding at the time the payment is processed.
Is a Graduate student with a position that qualifies for a stipend payment NSF Graduate Research Fellowship Award, Dept of Ed GAN, NIH NRSA T32, NIH F31


Use the  General Request eForm, select "HR/Payroll/Tax Reporting Submittal". The payment will be processed through Payroll and taxes will be withheld. See  Definition of Terms to determine what type of payment this is, then use the corresponding Natural Class.
7005 – Pre-doctoral Fellowships

Contact your Finance Center with questions
Graduate Stipend payments are considered taxable income.

Students who have received paychecks will be sent IRS Form W-2 by January 31 for the preceding calendar year.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year.
Is a Graduate student that is receiving a fellowship payment or stipend not related to a degree E.E. Just Fellowship Use the  Payment Request eForm, select Dartmouth Student and Other Payment. The payment will be processed through Accounts Payable.
These payments are generally paid in advance.
See  Definition of Terms to determine what type of payment this is, then use the corresponding Natural Class.
7005 – Pre-doctoral Fellowships

Contact your Finance Center with questions
An award may or may not be considered taxable income.

Please refer students to IRS Publication 970 for detailed information on the taxability of awards (available on the  IRS website).

Students may also consult with a tax professional or call the IRS help line at 1-800-829-1040 (tell student to explain that the question pertains to a stipend or grant payment issued to them by their college so that the IRS can direct the student to the appropriate person.)

Dartmouth College cannot determine whether an individual's award is subject to tax.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year. Any awards paid to non-residents may be subject to federal income tax withholding at the time the payment is processed.
Undergraduate is awarded Dartmouth funds for career exploration and/or co-curricular purposes.
 
(They may coincidentally be providing a service to an outside organization, but the funding is paid to the student.)
Rockefeller Public Affairs and Public Policy Fellowships
Institute for Security ISTS-Neukom Institute Grant
Dickey International Internships
Tucker Fellowships
Career Services Internships
Kinsey Grants
Global Health Fellowship
Little Devices Lab Internship
Use the  Payment Request eForm, select Dartmouth Student and Other Payment. The payment will be processed through Accounts Payable.
These payments are generally paid in advance.
See  Definition of Terms to determine what type of payment this is, then use the corresponding Natural Class.
7002 – Internships

Contact your Finance Center with questions
An award may or may not be considered taxable income.

Please refer students to IRS Publication 970 for detailed information on the taxability of awards (available on the  IRS website).

Students may also consult with a tax professional or call the IRS help line at 1-800-829-1040 (tell student to explain that the question pertains to a stipend or grant payment issued to them by their college so that the IRS can direct the student to the appropriate person.)

Dartmouth College cannot determine whether an individual's award is subject to tax.

Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year. Any awards paid to non-residents may be subject to federal income tax withholding at the time the payment is processed.
Needs an Advance for business expenses incurred while doing college business Needs payment for hotel room at approved conference, expected travel expenses, purchase food or supplies for event, etc. Use the  Payment Request eForm, select Dartmouth Student and "Payables Advance".

Student must also settle/clear the advance by submitting the Payment Request eForm, select Dartmouth Student and Travel/Business Expense with appropriate receipts.
Provide Entity and Org followed by 909000.910000.0000 and Natural Class 1465.

Contact your Finance Center with questions
N/A
Needs a Reimbursement for travel or entertainment expenses incurred for college business Student used personal funds for department purchase Use the  Payment Request eForm, select Dartmouth Student and Travel/Business Expense. For Non-Employee Travel there are two natural classes:
8148 – Domestic Travel
8118 – Foreign Travel
 
Contact your Finance Center with questions
N/A
Subjects Fees Payments to research study participant monetary award for donating blood Refer to your Finance Center for procedures. Contact your Finance Center with questions Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year. Any awards paid to non-residents may be subject to federal income tax withholding at the time the payment is processed.

An IRS Form 1099MISC tax form will be sent to a student by January 31 if the student accumulated $600 or more in payments and/or non-cash value of prizes/awards in the previous calendar year from Dartmouth College funding sources.
Receives a one-time award or prize to honor his/her achievement The Albert I. Dickerson 1930 Freshman Essay Prize
English Department Creative Writing Prizes for Undergraduates
The Chase Peace Prize
The Kemeny Prize
Prizes and Awards to Graduating Students
Use the  Student Prize and Award eForm.
These are almost always a one-time payment.
7003 – Prizes & Awards

Contact your Finance Center with questions
Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year. Any awards paid to non-residents may be subject to federal income tax withholding at the time the payment is processed.

An IRS Form 1099MISC tax form will be sent to a student by January 31 if the student accumulated $600 or more in payments and/or non-cash value of prizes/awards in the previous calendar year from Dartmouth College funding sources.
Gifts/Raffle Prizes Winner of raffle drawing in student-focused event

Gift for graduating student
Use the Student Prize and Award eForm.

These are almost always a one- time payment.

If reimbursing for the purchase of Gifts/Raffle Prizes complete the Payment Request eForm, select Dartmouth Student and Travel/Business Expense and appropriate receipts.

This must include the value or total amount of the prize/gift/award for each student. (This is for IRS tax reporting purposes.)
· any payment amount ($1 or more), cash equivalent gifts/prizes (i.e. gift cards or gift certificates), or
· any tangible gift/prize (i.e. shirt, clock, plaque) valued at $50 or more
Contact your  Finance Center with questions Non-resident students will receive an IRS Form 1042-S by March 15 showing payments and withholdings for the previous calendar year. Any awards paid to non-residents may be subject to federal income tax withholding at the time the payment is processed.

An IRS Form 1099MISC tax form will be sent to a student by January 31 if the student accumulated $600 or more in payments and/or non-cash value of prizes/awards in the previous calendar year from Dartmouth College funding sources.

 

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