Processing Non-compensatory Payments

Rules for submitting non-compensatory payment requests:

1. No individuals who are employees can receive Non-compensatory payments.
   • Exceptions include student employees receiving scholarship/fellowship payments while also working a separate job on the regular payroll or Post Doc Scholars who are on a zero rate of pay on the regular payroll and receiving Post Doc stipend payments through the Non-compensatory Payment System.
2. Payments exceeding $7,500 require additional documentation justifying the amount.  For any month in which a non-comp recipient receives total payments exceeding $7,500, a reason should be included to explain and verify that the amount is correct and it does not represent compensation.  Documentation should include specific student activities and/or reason for payment. 
3. Payment requests charged to 3X1 or 4XX cost objects require backup documentation (e.g. award letters) that clearly explain use of the cost object and activities of the student.  Rather than a statement that the student is not performing work or services, the documentation should explain the student activities in order for Corporate Payroll Services to make an educated determination that the payments in no way qualify as compensatory.
4. Non-compensatory payments can never be charged to 15x or xx3 cost objects.
5. Payment request forms should be reviewed for accuracy by the preparer and authorizer before submitting to Payroll Services to be processed.
6. Payment requests should be received by Corporate Payroll Services by the stated deadlines as indicated in the schedule.

To establish a new recipient of a non-compensatory payment:

1. Complete a Non-compensatory New Recipient iForm available on the Non-comp iForms tab in Duke@Work.  
2. If the individual elects to have tax withholdings, complete Forms W-4 and NC-4.
3. If the recipient is a foreign national, ensure the recipient has visited Duke Visa Services for immigration clearance. Additionally, they will need to complete the Foreign National Form via Success Factors. I-9 forms are not appropriate for non-compensatory recipients. Visa classifications must be eligible for non-compensatory payments issued to foreign nationals. Note: H-1B and TN visa holders are not eligible for non-compensatory payments.
4. Complete direct depost. Direct Deposit should be set up in DukeHub unless you are not a student (postdoc).

Please keep in mind...

• If a person is new to your area, but not a new recipient, complete the Non-compensatory Change iForm not the new recipient iForm.
• You must include SSN or ITIN on the iForm.
  • Please note: Checks and vouchers will be held by Corporate Payroll Services at 705 Broad Street after the first payment if no SSN or ITIN is recorded. If the payee is scheduled to receive one payment only, no payments will be issued without the SSN or ITIN.
• To confirm residency status, check appropriate box.
• The Campus address must be the department address.
• The home address must be a US address.
• Documentation must be attached for 3X1 or 4XX codes.

To change payment amounts, payment dates, organizational keys, funding sources, add a recurring or one-time payment, or to stop an existing payment, complete the Non-compensatory Change iForm available under the Non-comp Tab in Duke@Work.    

Please keep in mind...

• Verify beginning and ending dates to ensure there are no overpayments or underpayments.
• List the correct DUID number. 
• Non-comp payments occur once a month.  If you need to change a payment amount to reflect a partial month, stop the payment at the end of the month preceding the last payment. On the same change form, set up a one-time payment for the prorated amount.
• Prorated amounts should be calculated by the department payroll representative. To prorate non-compensatory payments, divide the total amount of the payment by 30. Proration is based on number of “work” days within the month as faculty/staff payments are prorated.  Multiple the result by the number of calendar days to be paid in the month.  The result is the amount of the prorated payment.
• Non-compensatory payments cannot be set up retroactively.  If you need to make a payment for a prior month, submit the payment form in the current month and use the “one-time payment” section of the form to issue the payment.
• Changes to home address or personal information are also completed via the Non-compensatory Change iForm. 

When the non-compensatory recipient should no longer be receiving funds, complete the Non-Compensatory End Award iForm available under the Non-comp Tab in Duke@Work.   

Please keep in mind...

• Read the end award form carefully before completing.
• Submission of the iForm will stop in future dated payments.  
• It is important to complete in a timely fashion.
• The form should be completed the month after a recipient has received his/her last payment.
• Non-compensatory recipient Duke Unique Identification numbers should always begin with “9”.

To request a new non-compensatory program, submit the following documentation to Corporate Payroll Services at payroll@duke.edu a minimum of 60 days prior to the first payment date:

• An outline of the program requirements which reflects the day-to-day activities of participants
• Detailed materials reflecting requirements from the individuals in order to receive the payment
• The Award Letter
• Submit a request to establish a new non-compensatory organizational key as well as to identify the payroll representative and department head responsible for the program.

The program will be reviewed to determine if the payments meet the qualifications for the non-compensatory payment system. There should not be a work requirement or services provided.  Examples of work or services include the following:  patient care related activities, assigned and supervised research, or transactions executed on behalf of the organization.