Foreign national students, scholars and employees receiving a payment from WashU typically fall into two main categories – a wage earner or a stipend recipient. Read below to understand the difference between the two and corresponding tax implications.
Stipend Recipients
Stipends are a form of support paid to an individual, sometimes originating from a “fellowship,” that is intended to help cover living expenses during a research, training or other type of academic experience.
A stipend recipient is someone who receives a stipend. The stipend is not considered payment for work. It is meant to provide a living allowance that enables the student or scholar to focus on the educational or research experience. Stipend recipients are not considered “employees” of the university. Therefore, stipend recipients do not complete Form I-9, Employment Eligibility Verification.
Wage Earners
The terms “wage” and “salary” are often used interchangeably and both refer to compensation for work. However, a “wage earner” is someone who is paid either an hourly wage or earns an annual salary.
Hourly employees are paid for each hour they work and track their hours by clocking in and out through Workday. WashU pays hourly employees on a bi-weekly basis. In contrast, salaried employees receive a fixed annual amount. WashU distributes salaries in regular monthly paychecks.
A wage earner is paid for the work or services they perform, which is considered employment income. In other words, wage earners are employees of the university.
All wage earners, whether hourly or salaried, are required to complete Form I-9, Employment Eligibility Verification. This process includes completing tasks in the HR platform “Workday” and meeting with a member of the I-9 team to verify work authorization documents.
Pay Rate Type in Workday
To confirm your pay rate type in Workday:
- Navigate to your Workday Profile by clicking on the person icon in the top right-hand corner of the main page
- Click on ‘View Profile’
- Click on ‘Compensation’ in the red menu on the left-hand side
- You should see your ‘Compensation Plan’ under the ‘Plan Assignments’ section
- The plan will say ‘Hourly’ or ‘Salary’ if you are a wage earner. It will say ‘Stipend’ if you are a stipend recipient.
Tax Implications
Because both types of income – stipends and salaries/wages – are taxable income, WashU implemented a special process to help foreign nationals determine how their WashU payments should be taxed.
This process begins with completion of the Foreign National Information System (FNIS). Review FNIS instructions for more details.
Find general tax withholding information on the Tax Withholdings page.
To learn more about filing taxes in the U.S., refer to the Filing your U.S. Taxes page.
Fellowship Stipend Recipients
Fellowship stipend recipients can find additional information about taxability of fellowship stipend payments on the WashU Financial Services website.
Refer to the Quarterly Estimated Tax Payments WashU Financial Services webpage for information about Quarterly Estimated Tax Payments that may be required for foreign national stipend recipients.
Tax Forms
| Form | Who receives the form | Where to find the form | When available |
|---|---|---|---|
| Form W-2 | Wage earners who work a biweekly or monthly paid job that have taxable wages not covered under a tax treaty. | Workday: Benefits and Pay icon, My Tax Documents | By January 31st |
| Form 1042-S | Nonresident alien stipend recipients and Any tax treaty benefit holders | Uploaded into FNIS or mailed (for terminated employees only) | By March 15th |
| Stipend Letter | Resident alien stipend recipients (who did not claim a tax treaty) | Workday: Personal Information icon, Worker Documents | By January 31st |
Refer to the Tax Documents resource for more information about tax documents.
Additional Related Resources
Steps for Newly Hired Foreign Nationals – onboarding steps for all newly hired foreign nationals
Employment and Taxes – a variety of additional OISS resources related to employment and taxes for foreign nationals (students, scholars and employees)
Disclaimer statement
The Office for International Students and Scholars (OISS) provides resources and content for general informational and educational purposes only. This information does not replace advice from the Internal Revenue Service (IRS) or a qualified tax professional. The information provided is subject to change. If your immigration status has changed in the past year or you have a complex tax situation, please consult the IRS or a qualified tax accountant.
WashU employees, including FNIS Support and OISS staff, are not authorized or qualified to provide tax-related advice or address individual tax questions beyond the general information available on university websites. For personalized assistance with tax obligations or filing, students and scholars are encouraged to seek personalized advice from a qualified tax professional at their own discretion and expense.