This is a handy guide to employee and student payments that covers which office pays, which tax forms the payee completes, and what type of IRS reporting (if any) happens afterwards. The guide is a joint effort of Payroll and Procure to Pay that can be found on both websites and is also downloadable here: Rice Payment Reference Guide
If you would like to do further reading about payments to employees and students, you might like IRS Publication 525 on taxable and non-taxable income, which you can review here: https://www.irs.gov/publications/p525
