Good morning, Gerri,
We recently went through this (using department budgeted money, not donor funds, however the challenge was the same). A faculty member graciously accepted our invitation for her to serve as a the expert art juror for an alumni art exhibition this spring. Honorarium / stipend we would normally issue to a juror for this event is $1,000. I had heard it had to be handled through payroll and below is what I learned:
- "Anyone who is employed by the college and is then being compensated for anything outside of their normal job is paid through payroll."
- "You can gross the payment up so that {name redacted] receives the full $1,000 as a net deposit. The total amount for the gross up as well as any employer paid taxes would be charged to the Advancement Dept. Budget."
- "The gross payment amount would have to be approximately $1,265.83 to net to $1,000.00."
In case it's helpful, I have attached the "One-Time Payment Form" that we currently use to document a request like this through Payroll.
I would be very interested in seeing other examples, a better way to accomplish this / how other institutions handle situations like this (issued through DocuSign).
Warm Regards,
Katie
------------------------------
Kathryn Rusak
Director Advancement Operations
College for Creative Studies
krusak@collegeforcreativestudies.edu------------------------------
Original Message:
Sent: 02-03-2023 11:03 AM
From: Gerradette Ann Silveira
Subject: Paying out Awards to University Employees
Good Morning All,
I had the same issues as Heidi. I could see lots of discussions on this topic but could not open the thread.
I am just curious what your foundation's preferred method of paying out donor funded merit awards. Our foundation policy states these must be paid through the university and the university policies also state through Payroll but the issue is the donor wants the full award amounts to be given. They do not want taxes etc deducted from the gross award amount. That would mean they would be issued a check from the foundation and a 1099 issued at year end - not following the current policy.
I am standing firm that they should go through Payroll per policies but am getting major push back from fundraisers.
Any words of advice or your perferred method (then we would modify policies) would be appreciated to get them onboard.
Thanks, Gerri
| Gerri Silveira
| Fiscal Manager
| | University Advancement | | p: | 541-962-3835 | | e: | gsilveir@eou.edu
| | Go Mountaineers! |
|