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Business and Financial Policies and Procedures

8.10.3 Payments to Non-Matriculated Students

Policy Statement

Payments to non-matriculated students for services rendered to the University of Illinois System are reported as compensation. Payments to non-matriculated students who are not expected to perform services for the system are reported as taxable miscellaneous income.

Since non-matriculated students are not enrolled in a degree program, the system has no IRS Form 1098-T and no U.S. Department of Education (ED) Title IV financial aid reporting requirements.

Reason for the Policy

The IRS and ED impose strict guidelines by payment type on how payments to students must be reported. For additional information, see Payments to Students.

Applicability of the Policy

Non-matriculated students receiving payment from the system.

Procedure

Payments for services rendered to non-matriculated students are processed by University Payroll and Benefits (UPB) and reported on Form W-2.

Payments to non-matriculated students who are not expected to perform services for the system are either Participant Support Cost payments, or they are processed via TEM and reported on Form 1099-MISC, Miscellaneous Income, by University Payables (UPAY).

For additional information, see Payments to Students.

Last Updated: June 19, 2019 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 11, 2019

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