Payroll on NRSA stipends has unique tax issues that need to be understood when an RST is made.  NRSA stipends are set up on job code 9905 and hit account code 61450. No benefits or taxes are withheld from these stipend amounts, so close scrutiny must be given to any RST moving charges between a stipend account and a regular salary account.  Moving between one stipend project and another, where both use the same stipend account code, is not a problem.

 Process for moving stipend charges

1. If moving between two stipend projects, complete an RST as normal.
2. If moving between a stipend and non-stipend, contact Payroll for appropriate steps.
3. Payroll will determine if they can correct through payroll system (Usually not possible for a prior tax period).
4. If Payroll is unable to process due to tax reasons, approval will be given to Cost Studies to complete the RST.
5. Cost Studies will review the RST (transfers onto stipends past 90 days will need extra review).
6. The employee may have to re-pay the amount to Emory, as well as file additional tax forms.

 Key points to keep in mind regarding NRSA stipend payments:

• Money paid on an NRSA smartkey are not W2 wages and are not reported by Emory University.
• No taxes can be withheld from NRSA payments.
• NRSA are not benefits eligible, so no pretax or 403b deductions can be withheld.
• Money paid to an employee on an NRSA smartkey is taxable and must be reported to the IRS using the last pay stub for the year for that assignment.  The employee will need to file a quarterly 1040-ES in order to pay federal withholding before year-end.
• NRSA money is setup on a separate job (9905) so that the money is not reported on a W2.
• Salary charge to job codes other than 9905 will be charged fringe because the wages are reported on a W2.
• RSTs do not correct taxes….this is only possible through Payroll.

From the Office of Cost Studies