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.