We have just changed our procedure for paying non-working fellows on our
National Research Service Awards.  We are now paying them once each
semester, half the stipend in the fall, and the other half at the beginning
of the spring semester, and at the end of the calendar year, they will
receive a 1099.  We are not making any deductions for FICA. etc. nor are
we withholding any taxes.

We are curious as to how other institutions are handling this situation.
Since fellows are considered non-working and payroll deductions are not
allowed to be made, are other institutions paying these individuals through
their payroll office or just cutting a check for the stipend.  If through
payroll, how do you justify them as employees.  Or has your payroll office
agreed to pay them, but will issue a 1099 at the end of the calendar year?

Finally, since post-docs are not students, how are you handling the workers
comp issues.  These folks are in limbo, neither employees, nor students.
Pre-docs are easier, they are considered students.

Your input will be appreciated and will be shared with all interested parties.

Thanks,

Robert
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Robert J. Kazalski                e-mail:  xxxxxx@admin.umass.edu
Accountant
Controllers Office
University of Massachusetts
Amherst, MA 01003
Phone:  413-545-1411
Fax:  413-545-4233

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