Taxation with Proper Representation
Documentation of tax withholding is so in right now. If you’re an employee of the university (or UPG), you’ve probably received your W2 by now (and if not, you can look it up in Academica under Employee Resources > Employee Self Service > Tax Forms). If you are a research fellow (or if you have fellows in your lab), tax season is a little less clear. Remember, fellows are not considered employees and are paid by stipend, which is not actual payroll. In most cases, WSU does not withhold taxes for its U.S. citizen stipend recipients as there is no requirement to do so (the university DOES have withholding and reporting requirements for non-resident alien stipend recipients, however; country-specific tax treaties may apply, so know your country’s rules and take a look at the IRS requirements for international taxpayers if this applies to you).
Stipend monies may not be subject to withholding by the university, but that doesn’t mean they are not subject to taxation; they are: all income that doesn’t go directly to tuition, fees and benefits is taxable income. As non-employees, stipend recipients will receive a Form 1099 instead of a W2. If you or stipend recipients in your lab have not yet received a 1099, be sure to contact the office of Total Compensation and Wellness here at WSU. If you have not already, check your quarterly tax reporting requirements. Some stipend recipients may be subject to the payment of estimated taxes for the calendar year are due in four installments; April 15th, June 16th, September 15th and January 15 to avoid underpayment penalties. If you’re unsure, check with an accountant to avoid future sanction.