Federal Work-Study (FWS) Payroll
Recording student wages where 75% is funded by the government and 25% by the school.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Student Wages Expense (School Share) | Expense (+) | 250.00 | - |
| Grant Receivable (Federal Share) | Asset (+) | 750.00 | - |
| Cash / Wages Payable | Asset/Liability (-) | - | 1,000.00 |
💡 Accountant's Note
This reflects the matching requirement for federal work-study programs. The school only 'expenses' its own required contribution.
Practitioner & Systems Framework
💻 ERP Architecture
FWS payroll is processed through the HR/payroll system with student employees coded to FWS funding source. The payroll system splits the gross wage into the federal share (75%) and the institutional share (25%) based on the configured funding percentages. The federal share is posted to a grant receivable until the drawdown request is submitted to the federal system (e.g., G5 for US Department of Education). The institutional share is expensed to the student aid cost centre. Drawdowns are matched to payroll records and posted to clear the grant receivable.
⚠️ Audit Flags
Auditors confirm that FWS students are enrolled and maintaining satisfactory academic progress (an eligibility requirement). Verify that the drawdown from the federal system matches the payroll records for the federal share. Test that the institutional matching share (25%) is genuinely funded from non-federal sources — using other federal funds to match is prohibited. Confirm that FWS wages do not exceed the student's individual FWS award limit.
📄 Required Documentation
FWS award allocation by student, payroll records showing FWS student wages, drawdown request and federal system confirmation, institutional matching source documentation (non-federal funds), satisfactory academic progress records, and individual award limit tracking.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.