Payroll reviews all requests to confirm the student’s tax status. Payments for students who are deemed non-exempt for tax purposes will have as much of the payment applied to QTRE as possible. If it is determined that the payment exceeds QTRE, the payee will be asked if they want to gross-up the payment to cover the student’s potential tax liability or pass that liability on to the student.
If the liability passes to the student, their payment will be reduced by the value of the tax reported on a 1042S. Account balances owed to FSU will be reported to Payroll. Payroll will return any funds, after taxes, to Student Business Services for application to charges owed via Payroll Deduction. Any funds remaining after application to QTRE, taxes, and charges due will be paid to the student by Payroll.