13.03 / Payments to University Employees for Services or Recognition with Monies Held by the ΊμΑμ½νΉΟ±¨ Foundation or the ΊμΑμ½νΉΟ±¨ Board of Trustees

Effective: July 01, 1997Last Revised: August 17, 2021

  1. Initiating Authority

    1. Financial Operations and Business Technology serves as the initiating authority.

  2. Purpose

    1. This policy addresses payments to University employees from monies held by the ΊμΑμ½νΉΟ±¨ Foundation (Foundation) or the ΊμΑμ½νΉΟ±¨ Board of Trustees (Trustees).

  3. Policy

    1. General Policy Statement

      1. University employees periodically perform services that are to be paid for with monies held by the Foundation or the Trustees. University employees are also periodically recognized for outstanding performance or achievements, and such recognition may provide for an award funded with monies held by the Foundation or the Trustees specifically for the purpose of supporting the recognition and/or funding the award. Payments for services or awards earned through, in connection with, or as a result of, an employment relationship with the University are subject to income tax withholding and must be paid through the University's payroll process as set forth in this policy.

    2. Payments for Services or Awards

      1. It is the policy of ΊμΑμ½νΉΟ±¨ that payments for services or awards should not be made to University employees directly from Foundation or Trustees accounts.
      2. In situations where payments for services or awards are to be made, funds will be reimbursed and deposited to University account code R80073, Gifts-WSU Foundation by payment from a Foundation or Trustees account to cover such payments with subsequent payment made to the employee through the University's payroll process.
      3. All payments to a University employee (including student employees) for services rendered to the University shall be made through the University's payroll process, even if the services provided are unrelated to the employee's regular employment responsibilities.
      4. No cash or cash equivalent, i.e., gift cards, shall be purchased from any University-related funding source, except when used as payment to research subjects participating in a project administered under the auspices of the University's Office of Research and Technology Transfer.

    3. Income Tax Exemption

      1. An award earned through an employment relationship with the University may become tax-exempt if the award is:
        1. Transferred to a University department for its own use
        2. Retained by the Foundation or the Trustees and designated for the employee's professional development
      2. The Payroll Section in the Office of Financial Operations and Business Technology will administer the means for making the tax-exempt election. (Obtain the payment election form that includes tax-exempt options and print and submit the paper form.)