New spend categories and validations for stipends
New spend categories have been created in an effort to improve 1099 tax reporting capability and ensure allowable funding on stipends. These categories are currently in effect. In addition, validations preventing incorrect funding moving forward will become effective February 1, 2023.
Below are the new spend categories, uses, and taxability:
| Spend Category | Description | Allowable Funds | Taxability | Notes |
|---|---|---|---|---|
| SC00300 | Use SC00394 Educational Service Stipends, SC00395 Student Leadership Stipends, or SC00396 Non-Service Expense | DO NOT USE | DO NOT USE | Spend Category is Inactive |
| SC00394 | Expenses related to mentor, teacher, athletics, and scholar stipends; including some travel costs (ex: related to sport competitions, student-oriented workshops) | FD043, FD044, FD045, FD046, FD047, FD048, FD049, FD050, FD051, FD053, FD054, FD085, FD089, FD095, FD180 | Not reportable on 1099, 1042-S reportable based on indiviudal’s residency | Spend Category is active, effective January 1, 2023 |
| SC00395 | Expenses related to ASWSU, Student Media, Cougar Marching Band, and other service related payments | FD055, FD180 | 1099-M reportable, 1042-S reportable based on individual’s residency | Spend Category is active, effective January 1, 2023 |
| SC00396 | Expenses related to BPPM 30.30 for fellowships, traineeships, internships, and other non-service related payments | FD043, FD044, FD045, FD046, FD047, FD048, FD049, FD050, FD051, FD053, FD054, FD085, FD089, FD095, FD180 | Not reportable on 1099, 1042-S reportable based on indiviudal’s residency | Spend Category is active, effective January 1, 2023 |
| SC00296 | Expenses related to scholarships and fellowships (BPPM 30.90) | FD043, FD044, FD045, FD046, FD047, FD048, FD049, FD050, FD051, FD053, FD054, FD085, FD089, FD095, FD180 | Not subject to tax withholdings, but reported as scholarships on 1098T | Spend Category has no changes |
Please review Workday Reference Report CR Ref Spend Categories.
These spend categories and fund validations will be put in place February 1, 2023. Prior to this date, departments should take the following actions:
- Update item types in MyWSU with correct funds and spend categories related to the above spend category guidance. Please reach out to Ed Mercado (Ed.mercado@wsu.edu) and Kellen Brumley (Kellen.Brumley@wsu.edu) for assistance in updating item types.
- Process any journals that have the above spend categories on an incorrect fund in FY23. After February 1, 2023, the validations will be live in Workday and transactions will no longer be allowed.
The next Payment Services Community Huddle is scheduled for Wednesday, January 11 from 11 a.m. to noon. These updates will be reviewed during this meeting.
If you have questions or concerns, please reach out to Payment Services via the Workday Service Desk.