As the terms "internships" and "fellowships" often have broad meanings, we suggest you contact the Office of Compliance (294-5180) 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 on a Supplier Invoice, the department 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, the department must also complete a Participation Agreement Form for each student. The Provost's Office provides a spreadsheet of the approved internship programs.
Payments for internship stipends must be paid via Supplier Invoice in Workday. Please send the W-9, Conflict of Interest (COI), and Participant Agreement to finance_delivery@iastate.edu. Finance Service Delivery will then assist in ensuring the appropriate documentation is attached to the supplier record.
The W-9, COI, or Participant Agreement should not be attached to the supplier invoice.
If using the Recurring Supplier Invoice for Support Cost Stipends the documentation will be attached to the creation of the scheduled payments on the Create Recurring Supplier Invoice task in Workday.
If a Supplier is not already set up, a Procurement and Expense Specialist must submit a request with both a W-9 and a Conflict of Interest form attached.
Use Spend Category SC10141 - Stipend-Other, for stipends for students.
Internships that do not pay stipends and only reimburse for travel expenses must be submitted in Workday Expenses. Travel reimbursements are not reported to the IRS, unless for meals not requiring overnight travel.
Payments to nonresident aliens for internship stipends usually will not qualify for exemption from 30% withholding by completing an IRS Form 8233, as they will be in the U.S. longer than the allowable number of days. Please contact the Office of Compliance (294-5180) about payments to nonresident aliens. Do not ask nonresident aliens to complete a W-9 when setting them up as Suppliers.
If you know they will not qualify for exemption from withholding, please add a note to the Supplier request indicating that the payee understands 30% withholding will be required. An IRS Form 8233 is not required as an attachment for requesting a new Supplier, but a permanent foreign address is required for tax reporting, even if that is not where the payment is being sent.
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 Supplier Invoice if documentation of the award from the third party is attached. These payments are relatively rare, so please contact the Office of Compliance (294-5180) for assistance.
This page was last updated on July 25, 2023.