Policy Under Review

 

New or revised policies recently implemented

The following fiscal policies have been updated this month:

03-150-114 constructive receipt

NEW fiscal policy that provides guidance on when financial consideration paid to an employee for services outside their normal pay must be paid as taxable wages and when it is appropriate to post funds to a unit index.

Following is a summary of key points outlined in this new policy:

a) Doctrine of Constructive Receipt (26 CFR § 1.451-2(a)):

  • If an individual has the right to receive compensation for services performed, the university must report the income to the individual and the Internal Revenue Service (IRS).
  • This is true even if the funds are not in the individual’s possession, but the individual has control of the money, has a right to the money or has a right to direct the payment of the money.

b) Any agreements for these types of services should be between the initiating unit and the employee’s unit, not directly with the employee.

c) Overload Compensation Paid to Employee:

  • When faculty or staff perform services that would otherwise be paid to an individual to complete, but are considered outside their regular work responsibilities, any financial consideration associated with these additional activities or services are considered taxable wages to the employee.
  • See Human Resources Policy 408 Overload Compensation for more information.

d) Financial Consideration Paid to Unit:

  • When faculty or staff perform activities or services as part of their normal work responsibilities (including service to the university), any additional financial consideration is posted to a unit index and funds will be allocated by the unit head as determined most appropriate to support the unit’s mission.
  • If funds are allocated to a faculty designated fund, the faculty member may oversee how these designated funds are spent as long the funds are used for appropriate university business purposes and the faculty member has no legal right to the funds at any time during employment with OSU or upon termination.

03-150-209 university Student organizations

NEW fiscal policy that provides guidelines & restrictions related to expenditures, revenue and fund balances associated with any recognized student organization that operates under OSU and has no legal/tax status outside the university.

 

Need a new or revised fiscal policy?

1) Contact the Fiscal Policy COORDINATOR for your Business Center or Unit

2) Work with your Coordinator to complete & submit the Fiscal Policy REQUEST Form

3) Monitor the STATUS of your request or any activity of a fiscal policy or rule