Waiver of Income
|No. 3-64||Rev.||Date 01-29-02|
Includes wages, salary, prizes/awards (except excludable prizes/awards), stipends, fellowships, taxable fringe benefits and other forms of gross income as defined by IRS regulations.
1. Prizes and awards are excluded from income if they are both (1) an employee achievement award, awarded as part of an established written plan or program, and (2) tangible personal property, subject to IRS regulations.
2. Cash prizes and awards cannot be excluded from income.
A. When an employee requests that income be waived and the funds transferred to the University, the following procedures must be followed:
1. The employee must sign a Waiver of Income form, prior to performing the service or receiving prize/award, which states that the income producing activity will be rendered to WSU without compensation.
2. The funds must be expended pursuant to an allocation and approval process overseen by the Dean of a College or a Dean Level Administrator.
3. Waived income cannot be specifically designated for use by or for the benefit of the individual requesting a waiver. The employee cannot have any control over the use of the funds.
4. Waived income is not a gift and a gift receipt may not be issued.
5. Waived income cannot be transferred to another charitable institution.
B. Principal investigators (PI), working under the terms of a grant, are governed by the terms of the grant. Property received from a grant may not be transferred to a PI or other WSU employee when the terms of the grant have been completed. Refer to PPM 4-27 for additional information.