Ditto At 01:48 PM 6/30/2004, you wrote: >Chuck, > >I may have told you this before, but it's worth saying again. The >profession of research administration owes you its genuine appreciation and >gratitude. You have quietly and continually served us all by the thoughtful >and coherent answers you provide on the listserv. > >I don't read all the exchanges on the listserv, but I always read your >responses. The delete button is not for a Chermside email, because I know I >will learn something, or confirm what I think I know, by looking at your >message. You take the time, which must be considerable, to write a response >that is cogent, applicable to the question, and that takes into account the >need for a context in understanding an answer. > >I don't know that we have a way to appropriately honor the extent of your >teaching prowess through the use of this volunteer medium, but I wanted you >to know that your efforts are sincerely appreciated -- even by those of us >who should know as much as you do. > >The rumor through the grapevine is that you are contemplating retirement. I >hope that's only a rumor. Your expertise and nuturance would be sorely >missed. > >Kim > >Kim Moreland, Director >Grant and Contract Administration >Fred Hutchinson Cancer Research Center >1100 Fairview Avenue, N >M/S J6-500 >Seattle, Washington 98109 >xxxxxx@fhcrc.org >206/667-4868 (voice) >206/667-6221 (fax) > > > >-----Original Message----- >From: Herbert B. Chermside [mailto:xxxxxx@VCU.EDU] >Sent: Wednesday, June 30, 2004 6:26 AM >To: xxxxxx@HRINET.ORG >Subject: Re: [RESADM-L] Can stipends be charged to R01 grants?? > > >You have the correct principles in your procedure. Your internal mechanism >has to be tailored to the needs of your other HR and payroll systems. Note >that payment of a traineeship or fellowship should result in a 1099 >(without withholding unless the payee requests it) for tax purposes, while >an employee receives a W-2 (the difference between "income" and "wage >income" under tax regulations). > >A confusion is the careless way individuals speak of "fellow", "post-doc", >etc. Be sure that your internal documentation and business practices >explicitly differentiate. For federal funds, the program announcement and >the award make the differentiation clear. Explicitly, NIH research grants >(R-xx) do not support fellowships/traineeships), while other grants (e.g., >K-XX and T-xx) support fellowships/traineeships. For other external >funds, you may have to probe a little to determine the difference. For >internal funds, you must be sure that the differentiation is quite >explicit. Note that fewer and fewer institutions have internal funds for >fellowships/traineeships. > >Yes, there is also confusion from the fact that fellows/trainees and >employees (at the same levels) appear to perform very similar >activities. That is because, at these levels, acquisition of knowledge and >skills for fellows/trainees is gained by performing the activities >(generally research) that an employee does. One differentiation can be how >"success" is evaluated: did the fellow/trainee "learn" through performance; >did the employee succeed in performance? Another is the standard for >tenure in the position: was the fellow/trainee successfully meet the the >training goal (like a scholarship requires continued meeting of a grade >point average, for example); does the employee do the required work in a >satisfactory manner? What they did day-to-day may be similar, and success >may look the same, but the underlying question was different. > >Making these differences clear in your documentation of procedures may help >your legal staff understand. And making transition from one category to >another, and back, simple to accomplish will help; leaving any >administrative process difficult encourages ignoring correct process, which >can lead to major non-compliances. There are related concerns for these >two categories in the benefits area. Health benefits -- level and who/how >pays -- is most important to these individuals, which is why most >fellowship/traineeship awards allow health insurance as a specific direct >cost while for employees it is buried in the benefits package. The >institution is responsible for FICA/medicare withholding and employer >payment for employees, but not for fellow/trainees. DO make the transition >easy because often individuals move from one category to another, and can >be in either or both during a tax period. And if possible, for perceived >equity, make the total compensation (income and health benefits) as similar >as possible between individuals who are at equal levels but in different >categories. > >Chuck > > >At 07:10 PM 6/29/2004, you wrote: > >>All, >> >>At the past week's NIH regional conference, I heard NIH tell us that any >>trainee (postdoc or grad student) who receives a stipend instead of a >>salary should NOT be charged to NIH R01 grants. Before we discontinue >>this practice at our institute, I thought I'd check with each of you to >>see what is actually done in practice. >> >>We do what I suspect many of you do: treat postdocs on a fellowship as >>"non-employees receiving stipends" while treating postdocs paid from >>institutional funds as "employees receiving a salary." This ensures that >>the former can be paid from fellowship awards (most of which prohibit an >>employee-employer relationship) while the latter can be paid from R01 >>awards (which REQUIRE an employer/employee relationship, according to my >>interpretation of A-122 Paragraph 7a and 53, each of which use the word >>"employee"). Even though this drives our legal staff crazy, knowing that >>two groups of people who are doing the exact same thing (training) are >>treated differently from an employment perspective, we've persevered >>anyhow, under the assumption that is how many other >>universities/institutes do this. >> >>Do any of you have a different take? Or treat your trainees differently >>from us? >> >>As always, thanks in advance for your responses. >> >>Pat Kaufman >>Director of Finance >>Stowers Institute for Medical Research >>Kansas City, MO >>816-926-4027 xxxxxx@stowers-institute.org >> >>====================================================================== >>Instructions on how to use the RESADM-L Mailing List, including >>subscription information and a web-searchable archive, are available via >>our web site at http://www.hrinet.org (click on "Listserv Lists") >>====================================================================== > >Herbert B. Chermside, CRA >Special Asst. to VP-Research >Virginia Commonwealth University >PO BOX 980568 >Richmond, VA 23298-0568 >Voice: 804-827-6036 >Fax 804-828-2051 >e-mail xxxxxx@vcu.edu > > >====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") >====================================================================== > > >====================================================================== > Instructions on how to use the RESADM-L Mailing List, including > subscription information and a web-searchable archive, are available > via our web site at http://www.hrinet.org (click on "Listserv Lists") >====================================================================== ====================================================================== Instructions on how to use the RESADM-L Mailing List, including subscription information and a web-searchable archive, are available via our web site at http://www.hrinet.org (click on "Listserv Lists") ======================================================================
