UNC Charlotte pays students for a variety of purposes. Most payments to students (besides government aid that is processed through Financial Aid) should either be classified as educational awards (namely scholarships/ fellowships) or compensation. On occasion, students will receive business expense payments (namely reimbursements or non-educational awards/prizes). Click on the summarized flowchart below for additional guidance in selecting the appropriate payment method:
Click the image below to enlarge:
Rationale and other considerations:
It’s important to keep in mind that the name given to the payment by the payer is not controlling. For example, a payment described as a “scholarship” that requires services to be performed is, in actuality, compensation and is subject to applicable payroll taxes. Misclassification of payments can lead to incorrect tax withholding and reporting.
Last updated: 10/28/16, 6/17/19, 8/13/19, 8/25/20, 10/13/21