Non-Employee Stipends | KCTCS

Administrative Procedures

Non-Employee Stipends

Policy Number: 5.4.23-P

Current Effective Date: 08/01/2017

Original Effective Date: 06/01/2013

Revision Dates: 06/01/2013, 05/01/2014, 05/30/2017

Revision Number: 3

Revision Summary: Prior Business Procedure 4.26

Responsible Official: Director of Procurement to Payment

References:

1. Purpose

To outline awards for stipends paid by KCTCS.

2. Scope

This procedure applies to all KCTCS departments.

3. General

3.1

A stipend is a form of compensation to help underwrite the cost for participating in a specific activity.

3.2

A stipend is separate from wages or salary because it does not represent payment for work performed. 

  1. Stipends are not performance based or hourly based.

3.3

A stipend enables an individual to be exempt partly or in whole in order to participate in a role that is normally unpaid (i.e. internship) or activities that cannot be measured in terms of specific tasks.

3.4

Stipends are awarded at lower amounts than what is expected as a permanent salary or similar work.

  1. Stipends are complimented by other benefits such as instruction, food, and/or accommodation.

4. Guidelines for Stipends

4.1

An individual receiving a stipend greater than $600 must be established as a 1099 supplier.

4.2

Awarded stipends are paid to participants as a non-service payment.

4.3

Stipends can be paid as directed by a sponsor such as a grant.

  1. Business units must use account 50235 for grant directed stipends. 
  2. Stipends must be submitted on a PAY voucher with supporting documentation. 
    1. BA8 Form.
    2. Copy of the grant verbiage listing the approval of the stipend award.
    3. List of awardees. 
    4. Amount of stipend per participant.
    5. Individual’s vendor identification number. 
  3. PAY vouchers will be reviewed by KCTCS Office of Procurement to Payment Services.

4.4

Questions regarding stipends should be directed to KCTCS Director of Procurement to Payment Services.