Determination of Non-Service Appointments

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Policy Number:
UW-5005
Old Policy Number:
1.06
Responsible Office:
Office of Human Resources

University Policy

Rationale/​Purpose:

This policy defines the parameters for accurately determining whether a payment to an individual qualifies as a service or non-service payment. The misclassification of payments may expose UW–Madison and the individuals involved to adverse impacts (e.g., benefits, financial aid, taxes, visa eligibility).

Scope:

This policy applies to individuals in UW-Madison non-service appointments. Primary users of this policy are employees who are determining whether someone should be placed in a non-service appointment.

Policy:
  1. Determination
    1. Those who process non-service appointments must review and analyze the payment and appointment using the Job Aid for Making Service vs. Non-Service Payment Determination, which may require input from research administrators.
    2. This form contained in the job aid must be retained pursuant to the applicable Record Retention Schedule and must be made available for audits by the Internal Revenue Service (IRS), the UW–Madison Office of Human Resources, or for other reasons as allowed by policy, rule, regulation, or law.
  2. Payments
    1. Non-Service Related
      1. Payments made to, or for the benefit of, an individual to aid the individual primarily in the pursuit of their own studies or research are non-service related (e.g., Fellowship, Scholarship, Traineeship).
      2. Payment is not dependent on work or service to the university performed by the recipient and is not taxed via payroll.
      3. Paid via payroll (not taxed) and benefits eligible.
    2. Service Related
      1. Payment to the individual is primarily for the required performance of teaching, research, or other services for the benefit of the university.
      2. Payment must be treated as employee wages/compensation in a service appointment under an employee title (e.g., Project Assistant, Research Associate, Teaching Assistant).
      3. Paid and taxed via payroll and benefits eligible.
Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

UW System Administrative Policy 238, Payments to Non-Resident Aliens

Policy Administration

Approval Authority:
Vice Chancellor for Finance and Administration
Policy Manager:
Associate Vice Chancellor/Chief Human Resources Officer
Contact:
HR Director & Program Officer -- Alisha Arnold, alisha.arnold@wisc.edu, (608) 265-1451
Effective Date:
10-29-2018
Revised Dates:

04-05-2019,12-01-2021, 04-29-2025

Reviewed Dates:

04-29-2025

Retrieved:
06-14-2025 16:43:50