Reimbursements for expenses are a non-taxable payments. Whether you volunteer or work for gratis is not relevant to the issue. Greg Schmidt ----- Original Message ----- From: "Pamela Miller" <xxxxxx@USFCA.EDU> To: <xxxxxx@HRINET.ORG> Sent: Wednesday, November 17, 2004 4:06 PM Subject: Re: [RESADM-L] group think > Travel costs were not "on the student's behalf" but in support of the > research project. Anyone with the right skills could have traveled to > assist the PI. The students may or may not benefit, and even if they did, > isn't this the point of involving students in research? I > > At 02:37 PM 11/17/2004 -0500, you wrote: >>It seems that we might need more information to be of more specific >>assistance. That having been said, the issue seems to be one not >>necessarily related to the withholding of tax, but rather, whether the >>payment of this travel on a student's behalf constitutes reportable >>income (i.e. whether it needs to be included/reported on a Form 1099 or >>Form W-2). Although the students receive no salary or stipend per se, >>the payment of travel expenses creates a quid pro quo situation. They >>are being 'compensated' (albeit perhaps not fairly) for their >>participation. The question is whether that compensation (payment to or >>on behalf of) is reportable as income. If the answer is yes, the second >>question is whether the university has an obligation to withhold tax. >> >>Helen K. Mourat >>Senior Grants and Contracts Officer >>Research and Technology Development Services >>Georgetown University >>Harris Building, Suite 103 >>3300 Whitehaven Street, NW >>Washington, DC 20007 >>(202) 687-1207 >>(202) 687-3825 (fax) >> >>-----Original Message----- >>From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On >>Behalf Of Pamela Miller >>Sent: Wednesday, November 17, 2004 1:33 PM >>To: xxxxxx@HRINET.ORG >>Subject: [RESADM-L] group think >> >> >>I have run into an impasse with our Comptroller, and I need HELP. >> >>We have a PI that has a sub from another university to carry out >>research for the USAID. >> >>Our PI has master's students that are helping to conduct this research >>under this contract. The students receive no salary or stipend for >>their help. However, project funds are used to pay for the student's >>travel to Latin America so they can assist the PI with the research. >> >>The problem is that our comptroller's office thinks that the students >>should be taxed on the funds spent on their travel because the students >>are part of a master's program that requires them to travel abroad and >>to write a master's paper. >> >>The comptroller argues that the travel funds are taxable because the >>students are "benefiting" from the travel in that the students can use >>this experience in Latin America to satisfy the travel requirements of >>their master's program and they might actually do some work (i.e., learn >>something) in Latin America that they could write about for their >>master's papers. >> >>I argue that the students are not required to do their master's paper on >>any topic related to this subcontract or to satisfy their field >>experience by working on his project in Latin America. They have other >>choices. They also earn no course credit for their participation in the >>project. Also, the funds spent for student travel is for the >>University's benefit (to comply with the terms of the sub) not the >>student's. >> >>Now because of this impasse, I will have to get a no cost extension so >>that we can iron things out and I am told I need to talk to a new tax >>person that has been hired who needs time to "look this up." >> >>Has anyone out there faced anything like this? I need specific >>citations to back up my position. It seems to me that this type of >>reasoning will undermine the very point of research in higher ed! >> >>Pam >> >> >>Pamela F. Miller, Ph.D. >>Director, Office of Sponsored Projects >>The University of San Francisco >>2130 Fulton Street >>San Francisco, CA 94117-1080 >>TEL 415-422-5368 >>FAX 415-422-6222 >>EMAIL xxxxxx@usfca.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") >>====================================================================== > > Pamela F. Miller, Ph.D. > Director, Office of Sponsored Projects > The University of San Francisco > 2130 Fulton Street > San Francisco, CA 94117-1080 > TEL 415-422-5368 > FAX 415-422-6222 > EMAIL xxxxxx@usfca.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") ======================================================================
