Purpose

To allow SUNY to utilize a new deduction code exclusively to transmit payments for nonresident alien scholarship recipients directly to the appropriate campus.

Affected Employees

SUNY nonresident alien students who receive scholarships (Company SCL- SUNY Scholarships, BU 71)

Effective Date(s)

Institution paychecks dated September 24, 2009

Background

Under IRS regulations, institutions that provide scholarships for items other than tuition and required fees (including room and board) to nonresident aliens must report this scholarship information to the IRS and must withhold taxes where appropriate. These scholarship payments are processed through the NYS payroll system in order to provide for the appropriate reporting and tax withholding.

A new deduction code has been established that will allow these payments to be returned directly to the appropriate campus. This will eliminate creation of a check for the student which must be signed over to the campus in order to offset the balance on their student account.

This new deduction code is limited to the Nonresident Alien Scholarship payrolls (28XX5). It has been determined that SUNY will allocate the funds to each campus using a centralized process from the SUNY System Administration.

OSC Actions

OSC has established the new Deduction Code 424 for SUNY NRA scholarships.

Agency Actions

Agencies may access the General Deduction CD (Agency) page and enter Deduction Code 424 with the applicable effective date and flat amount.

Questions

Questions regarding this bulletin may be directed to the Payroll Deduction mailbox.

Questions regarding the processing of scholarship payments may be directed to SUNY System Administration.