From the perspective of a small liberal arts college:
All undergraduates doing collaborative research with faculty in the summer
are paid as "employees" (with appropriate withholdings and FICA
contributions). For grant such as NSF-REU's, where students are budgeted
as "participants", we include "fringe benefits" at our "payroll taxes rate"
as an "OTHER" expense within the participant section of the budget. My
understanding is that our tax advisors believe that we must treat students
doing summer research as employees (although I'm not sure if anyone has ever
explored other options based on the educational aspects of these
experiences). Because the role of REU students is no different than that
of most other students paid with college and grant funds to do research with
faculty, accounting standards and A-21 mandate that we treat their pay in
the same way.
Frances Vinal Farnsworth
Coordinator of Sponsored Research
Munford House
Middlebury College
Middlebury, VT 05753
Tel: 802-443-5889
Fax: 802-443-2081
Email: xxxxxx@middlebury.edu
Web: http://www.middlebury.edu/~grants/
-----Original Message-----
From: Shannon Davis [mailto:xxxxxx@UARK.EDU]
Sent: Mon, December 22, 2003 5:21 PM
To: xxxxxx@HRINET.ORG
Subject: Re: [RESADM-L] RESADM-L Digest - 18 Dec 2003 to 19 Dec 2003
(#2003-248)
Happy holidays.
I have a set of questions related to paying students receiving funds for
participation in REU training programs and other similar programs. Can you
tell me how you pay your REU students and other students who are receiving
funds while in a program that is specifically designed to be training
oriented and not employment by the institution? Do you pay them straight
stipends with no deductions or do you enter them in the payroll as
employees and deduct withholding, fringes etc.? Which approach do you
believe benefits the students most? What do your institutional tax experts
tell you about handling these types of payments to students? Any
information on how you handle this situation at your institutions would be
helpful.
Shannon G. Davis Ph.D., CRA
Assistant Director
Research Support and Sponsored Programs
University of Arkansas
Fayetteville, AR 72701
479.575.3845
xxxxxx@uark.edu
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