We budgeted "payroll taxes" as an "Other" expense with the Line F budget
line.

Franci Farnsworth
Frances Vinal Farnsworth
Coordinator of Sponsored Research
MIDDLEBURY COLLEGE
Munford House
Middlebury, VT 05753
Tel:  802-443-5889
Fax: 802-443-2081
Email:  xxxxxx@middlebury.edu

> -----Original Message-----
> From: Andy Shepard [SMTP:xxxxxx@UNH.EDU]
> Sent: Friday, October 22, 1999 2:41 PM
> To:   xxxxxx@hrinet.org
> Subject:      NSF REU Supplements and Student Fringes
>
> Hi,
>
> I have a query of those institutions that receive REU supplements; are
> employee or fringe benefits an allowed charge?  If you allow the students
> to
> be paid through your payroll system, how do you handle any partial fringe
> benefit charges that may accrue?
>
> I am aware applicants must request student support on line F (Participant
> Support Costs) of form 1030 which does not allow for partial (or any)
> fringe
> benefits, yet we allow students to be paid via our payroll system and some
> times the charges accrue fringes.
>
> The REU guidelines are thin in this topic but do state:
>
> [Special Note: A grantee may pay stipends as scholarships or wages as it
> determines appropriate. In either case, money received by individuals may
> be
> taxable income under the Internal Revenue Code of 1986 and may also be
> subject to state or local taxes. Grantees should provide students with
> copies of the United States Internal Revenue Service Publication 4,
> 'Student's Guide to Federal Income Tax.' If stipends are paid as
> scholarships, grantees are also encouraged to provide copies of IRS
> Publication 520, 'Scholarships and  Fellowships,' to participants.
> Questions
> regarding applicable Federal taxes should be directed to the IRS. Grantees
> should also provide participants with information on any applicable state
> or
> local taxes.]
>
> I look forward to reviewing your opinions.
>
> Thanks, Andy
>
> --
> ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
> Andy Shepard                                       Phone: (603) 862-2436
> Office of Sponsored Research              Fax: (603) 862-3564
> University of New Hampshire            Email: xxxxxx@unh.edu
> Durham, NH 03824-3585                http://www.unh.edu/osr/index.html
> ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
>
>
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