RESADM-L readers:

more food for thought on the topic of stipends and FICA withholding is
available
on the web.

See IRS Bulletin No. 1998-5 (Feb. 2, 1998), page 19. (This is downloadable
from
the IRS site at http://www.irs.ustreas.gov/prod/bus_info/bullet.html)

background information on this ruling available at
http://www.universitytax.com/studfica.htm

Molly Daniel
Grants Specialist
Sarah Bush Lincoln Health System
Mattoon, IL  61938
email: xxxxxx@sblhs.org

____________________Reply Separator____________________
Subject:    more on stipend vs salary
Author: Mary Norton <xxxxxx@BROWN.EDU>
Date:       03/03/99 2:19 PM

I am currently having this discussion with the Controller about how Fellows
who receive a stipend on a Training grant differ from Research Assistants
working in the same lab and perhaps the same research.  The University is
posing that FICA should be charged to all Fellows' stipend and picked up by
the department (since per NRSA guidelines it can't be charged to the
grant).  Has anyone else had this "discussion"?  What did you do to
convince central adm that Fellow stipends are not subject to FICA, etc?
The fact that they are Trainees w/ other responsibilities does not seem to
be swaying anyone.  Thanks!

Mary Norton, Director
Bio Med Research Administration
Brown University
Box G-A322
Providence RI 02912
401/863-1631 (phone)
401/863-3378 (fax)
email: xxxxxx@brown.edu
http://biomed.brown.edu/Administration/BMRA/BMRA.Table.HTML

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