3:31 PM 7/20/2013

Accounting Office / Accounts Payable

As the terms "internships" and "fellowships" often have broad meanings, we suggest you contact Bill Cahill (294-5124) or Carole Gill (294-5181) to determine the correct payment method.

Internships: The Provost's Office maintains a website to describe internships and other experiential learning opportunities. Before processing a payment through the Accounting Office, you must get the internship program approved by the Provost's Office by completing an Undergraduate Internship Program Request/Approval Form. If the program is approved, you must also complete a Participation Agreement Form for each student. The Provost's Office will provide a spreadsheet to the Accounting Office of the approved internship programs. Therefore, neither the Undergraduate Internship Program Request/Approval Form nor the Participation Agreement Form needs to be attached to the Disbursement Voucher.

Payments for internship stipends will require using a Disbursement Voucher, which will require the existence of a KFS Vendor with a Social Securirty Number, as tax reporting is required. However, amounts for mileage or other travel expenses will not be reported to the IRS.

Internships that do not pay stipends and only reimburse for travel expenses can use a Simple Disbursement Voucher, as no tax reporting is required for travel expense reimbursement.

Payments for internship stipends for non-resident aliens will require 30% withholding for federal taxes, unless exempted by means of an IRS Form 8233.

Fellowships: A fellowship usually is a payment awarded to an individual by a third party, such as the Ford Foundation. The payment is not dependent on attendance at ISU or performance of services at ISU. That is, the money follows the student. Payment can be made on a Disbursement Voucher if documentation of the award from the third party is attached.

This page was last updated on August 16, 2016.

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