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UPB - Awards & Prizes for Foreign Nationals

Awards & Prizes for Foreign Nationals

Awards provide monetary recognition of a person’s achievement.

Prizes are issued for winning a contest or competition.

All awards & prizes to foreign national non-resident aliens must be processed through University Payroll & Benefits (UPB) prior to disbursement.

Consider the following information before presenting an award or prize to a foreign national.

Awards & Prizes are Taxable

Always submit awards & prizes on the Foreign National Payment e-Form (FNPe-Form). This ensures the payment will be properly taxed.

  • An award or prize is usually considered taxable income. Taxes will be withheld.
  • Consider grossing-up the payment.
  • Tax treaties may be available. The foreign national can work with UPB if applicable.

Awards & Prizes Have No Spending Restrictions

There are no restrictions on how an award or prize may be spent:

  • The payer cannot stipulate how the money is spent.
  • Recipients may spend the money however they choose

Awards & Prizes are Not:

Services

Do not use an award or prize to pay someone for performing service for the University of Illinois System.

Wages:

Multiple or repeated awards or prizes to the same person may be considered wages or payment for services. This may require employment or engaging the person as an independent contractor.

Honoraria:

An honorarium shows appreciation for voluntary service and is not a required payment. An award or prize recognizes achievement or winning a contest. Do not pay an honorarium with an award

Scholarship

Scholarships typically support educational needs primarily for the benefit of a student’s academic development.

Some common scholarships:

Travel payments:

Frequently misnamed “Travel Awards.”

These payments are actually scholarships specifically designated for travel expenses that support the student’s academic development.

Research payments:

Frequently misnamed “Research Awards.”

If these payments are designated to be spent on the recipient’s research, then they are actually scholarships.

Employee Recognition Awards:

Employee recognition awards are given to employees of the U of I System to recognize employment-related achievement and recognition.

Employee recognition awards are submitted using the Adjustment Notification Application (ANA).

Policy: https://www.obfs.uillinois.edu/bfpp/section-4-payroll/make-employee-award-payments-in-ana

Additional Information:

https://www.obfs.uillinois.edu/payments-foreign-nationals/other-types-payments/award-prize-human-subject-payments




Keywords:Awards & Prizes for Foreign Nationals   Doc ID:119653
Owner:Erik O.Group:University of Illinois Training and Development Resources
Created:2022-07-13 15:47 CDTUpdated:2022-07-13 15:50 CDT
Sites:University of Illinois Training and Development Resources
CleanURL:https://answers.uillinois.edu/training/upb-awards-prizes-for-foreign-nationals
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