Pay Students

Step-by-Step

The different payments made to undergraduate and graduate students are outlined below. Eligibility criteria and scholarship/award amount may vary according to individual scholarship/award program restrictions and fund availability established by Mason Colleges. Please contact the International Tax Office when a non-U.S. citizen is the proposed recipient of a scholarship, prize, or award.

Definition: Qualified educational expenses are limited to tuition and fees required for enrollment, books, supplies, and equipment required for courses taken. Tuition grants/waivers must not be used as a substitute form of compensation; compensation must be paid through Human Resources and Payroll.

Requirement: Available to undergraduate or graduate students currently enrolled full-time during the semester of the award. Students must meet the scholarship criteria established by individual Mason departments.

Taxation and reporting: Awards for qualified educational expenses are the only amounts that are not taxable to the student. IRS Form 1098-T is issued to the student, if applicable. It is the student’s responsibility to self-report any amounts received which exceed “qualified tuition and related expenses” as income. Rule application is the same for Domestic and Foreign students.

Payment processing: These awards go through the Financial Aid workflow and are made available on the student’s account and/or applied directly to their bill. The disbursement will first be applied against any outstanding balance the student may have with Student Accounts. As appropriate, any extra is refunded directly to the student.

Examples: Student Athletic Scholarships, Ph.D. Scholarships, Master Scholarships.

Account Code: 78560 – Undergraduate Tuition and Fees
78515 – Doctoral Tuition and Fees Award
78510 - Master Tuition and Fees Award

Definition: Non-qualified scholarships are scholarship payments used for expenses that are not qualified tuition as defined above. These payments typically support educational needs, such as optional fees, room, board, travel, supplies, travel, or living expenses primarily for the benefit of the student’s academic development. The award does not require the student to perform services such as serving as an intern, or assisting with teaching, research, or other academic work. Compensation for services must be paid through Human Resources and Payroll.

Requirement: Available to undergraduate or graduate students currently enrolled during the semester of the award and meet the scholarship eligibility criteria. Most of these scholarship decisions are made by scholarship committees established by individual Mason departments.

Taxation and reporting: Awards for non-qualified educational expenses are subject to income tax and are self-reported by the student.

  • Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies.

Payment processing: Payments go through the Financial Aid Workflow and are made available on the student’s account and/or applied to their bill. The disbursement will first be applied against any outstanding balance the student may have with Student Accounts. As appropriate, any extra is refunded directly to the student. Accounts Payable is responsible for issuing disbursement of remaining funds.

Examples: Dissertation Completion Grants, Graduate Student Travel Fund, Undergraduate Travel Fund, Undergraduate Student Research Scholarship, Mercatus Scholarships, STEM Learning Assistant Scholarships, and OSCAR Excellence Awards.

Account code: 78520 – Graduate Scholarship/Fellowship
78570 – Undergraduate Scholarship
78525 - Graduate Health Subsidy

Definition: Scholarship/fellowship given to students, generally in a term of non-enrollment (i.e. summer), for the pursuit of their studies and research. These awards are not considered compensation, and no work requirement may be attached to the offer of a scholarship/fellowship.

Requirement: Undergraduate or graduate students participate in research and creative activities. Students submit a scholarship application and are selected by individual Mason departments.

Taxation and reporting: Awards for non-qualified educational expenses are subject to income tax and self-reported by the student.

  • Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies.

Payment processing: As of March 1, 2023, payments are requested through the Scholarship/Fellowship for period of Non-Enrollment Workflow and paid through Accounts Payable via check or direct deposit. Accounts Payable will continue to accept the PDF fillable version of this form until June 1, 2023. The PDF version will not route through the new Workflow and will require the department to obtain manual signature approval and to submit the form via email. Click here to access the PDF version of the form.

Examples: Summer Dissertation Competition Scholarships, Summer Graduate Travel Fund, Summer Undergraduate Student Research Scholarship (OSCAR), and Study Abroad Summer Program.

Account Code: 78520 – Graduate Scholarship/Fellowship
78570 - Undergraduate Scholarship

Definition: Participant Support Allowance awards a non-enrolled student or a non-Mason employee who is a recipient of a service or training session associated with a workshop, conference, seminar, symposium, or other information-sharing activity funded by a sponsored award. The payment is provided to help defray personal and/or travel expenses related to a sponsored project, such as meal incidentals and minimal transportation costs incurred by the participant. The travel reimbursement process should be used for significant travel costs. Participants do not perform work or services for the project or program other than for their own benefit and are not required to deliver anything or provide any service to the university in return for these support costs.

Requirement: Students must meet the criteria established by individual sponsors. Only fund numbers (starting with a 2xxxx) may be charged.

Taxation and reporting:

  • Domestic students. Students receive a 1099-Misc., if applicable.
  • Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies.

Payment processing: As of March 1, 2023, payments are requested through the Participant Support Workflow. Accounts Payable will continue to accept the PDF fillable version of this form until June 1, 2023. The PDF version will not route through the new Workflow and will require the department to obtain manual signature approval and to submit the form via email. Click here to access the PDF version of the form.

Examples: Stipend for StarTalk Workshop Participants, IREX Grant Stipends, or Travel Support to the WSRD workshop.

Account code: 78583 – Participant Allowance stipend Excl from F&A
78584 – Participant Allowance Incl from F&A

Definition: Externally funded fellowships are awards that support masters and doctoral students for research, writing, fieldwork, language study, professional development, or independent projects undertaken in conjunction with a degree program. There is no work component or employment relationship with the university associated with an externally funded fellowship. Students apply for fellowships, and when granted, these awards are distributed directly to the student, either by the organization awarding the fellowship or through the university. Expenses involving student reimbursement should be processed using the Externally Funded Fellowship Payment Form. Note: Tuition support provided as part of the fellowship should be processed through the Financial Aid Workflow.

Requirement: Payments must be charged to a grant fund (start with a 2xxxxx). Students apply for fellowships and, when granted, these awards are distributed directly to the student, either by the organization awarding the fellowship or through the university. Note: Fellowships cannot be paid to a student employee. Exceptions, approved by the Office of Sponsored Programs, can be made for some students if students employment is not associated with the sponsored project.

Taxation and reporting: In accordance with the Tax Reform Act of 1986, scholarships and grants received during a specific calendar year that exceed qualified educational expenses are considered taxable income. The IRS provides extensive information about tax benefits for education. For U.S. citizens, fellowship stipends do not generally have tax taken out at the time of payment, but 1099 MISC. will be issued if total payments during the calendar year equal to or exceed $600. All payments to international students are subject to the International Tax Office review. More information about the tax withholding can be found here /internationaltax/scholarships-and-fellowships/

  • Domestic students will receive a 1099-Misc, if applicable.
  • Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies.

Payment processing: As of March 1, 2023, payments are requested through the Externally Funded Fellowship Workflow. Accounts Payable will continue to accept the PDF fillable version of this form until June 1, 2023. The PDF version will not route through the new Workflow and will require the department to obtain manual signature approval and to submit the form via email. Click here to access the PDF version of the form.

  • If a student is receiving these payments during a period of enrollment and the student has applied for federal aid through the Free Application for Federal Student Aid (FAFSA), the Financial Aid Office will be required to review the award to determine if any changes to federal aid need to be made.

Examples: National Science Foundation Graduate Research Fellowship Program, National Institute of Health Fellowships, etc.

Account code: 78522 – Externally Funded Fellowships

Definition: Awards are given to students in recognition of academic achievement.

Requirement: Students must be enrolled full-time for the semester of the award.

Taxation and reporting:

  • Domestic students. Self-reported by a student.
  • Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies.

Payment processing: Payments go through the Financial Aid Workflow and are made available on the student’s account and/or applied to their bill. The disbursement will first be applied against any outstanding balance the student may have with Student Accounts. As appropriate, any extra is refunded directly to the student.

Examples: Award to a student who has the highest GPA in their area.

Account code: 78566 – Undergraduate Academic Scholarship
78520 – Graduate Scholarship/Fellowship

Definition: Payment to any student who is required to perform services in order to receive compensation, and is subject to the control of and supervision by an employee of the university.

Requirement: Graduate students must be enrolled full-time per University Catalog for a semester of award. Studies and research in which the primary beneficiary is the university or grantor (benefit is more than incidental).

Taxation and reporting: Subject to tax withholding. An IRS Form such as W-2 and/or 1042-S is issued.

Payment processing: These payments are processed through Payroll and are not included when calculating a student’s eligibility for financial aid.

Examples: An academic job held by a graduate student, which involves paying for services rendered. Graduate Assistants can be classified as Graduate Teaching Assistants (GTA), Graduate Research Assistants (GRA), and Graduate Professional Assistants (GPA).

Account code: 61190 – Graduate Assistants

Definition: The University may provide prizes and awards to university students for achievement, performance, or competition for programs and activities that support the mission of the university. Prizes or other items of limited value (generally thought of as less than $150 per recipient per calendar year). Gift cards are not allowable for student prizes.

Requirement: Students must be enrolled for the semester of the award. Winners are selected by judging contest committees or random drawings. Prizes may not be given as a "thank you" to student staff/assistants who participate in the event.

Taxation and reporting: The department is responsible for collecting and retaining tax documentation

  • Domestic students. If total payments are equal to or in excess of $600 in a given calendar year, a completed COV-W9 and the list of paid transactions must be sent to Accounts Payable at acctpay@gmu.edu.
  • Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies. Please contact the International Tax Office at inttax@gmu.edu for the required forms and reporting.

Payment processing: May be purchased on the P-Card. A list of recipients and the business purpose of the event must be attached to the transaction in Mason Finance Gateway. To request a cash prize payment directly to the student please send a completed Payment Request form, Substitute W-9, and memo to support the prize to Accounts Payable.

Examples: Best essay writing, Best Short Story, or Best Poster Competitions, random drawing at a student-focused event.

Account code: 78131 – Awards and Prizes

Definition: Honoraria are typically paid to students with the intent of showing appreciation for participation in Mason activities for which no payment is required. There is no contract, the fee is not set or negotiated by the recipient.

Taxation and reporting:

  • Domestic students. If total payments are equal to or in excess of $600 for a calendar year, AP reports on 1099-Misc.
  • Foreign nationals/Non-Resident Aliens. Depending on the type of immigration status that a student holds, honorarium payment might be prohibited by law. If allowed, Foreign Nationals/Non-Resident Aliens (NRA): Taxable/Reportable on 1042-S (any amount) with 30% tax withholding, unless a tax treaty or reduced rate applies.

Payment processing: As of March 1, 2023, payments are requested through the Honorarium Payment Workflow. Accounts Payable will continue to accept the PDF fillable version of this form until June 1, 2023. The PDF version will not route through the new Workflow and will require the department to obtain manual signature approval and to submit the form via email. Click here to access the PDF version of the form.

Examples: A volunteer judge for Patriot Games, a cooperating teacher for Mason research, or a student assisting housing by allowing prospective students to visit his/her dorm room. More information can be found on the Process Honorarium Payments page.

Account code: 78130 - Honoraria

Definition: Student payments for expenditures incurred for activities that primarily benefit the University can be fully reimbursed. Departments must indicate that the expenditure for the activity primarily benefits the University and/or describe the business purpose of the University.

Taxation and reporting: These payments are not considered reportable as taxable income to IRS.

Payment processing: Reimbursements are processed through the Mason Finance Gateway.

Examples: Student purchases emergency office supplies while traveling on university business. The student is asked to travel to Chicago, IL to represent the university in a National Forensic Competition.

Account code: Various (Refer to Expenditure Account Code List)

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