Payroll/ Fellowship, Personnel Services

 

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Salaries, Stipends and Fringe Benefits

The large majority of sponsored project funds are expended in support of personnel. Personnel support is of two major types

  1. salaries and wages which are paid to employees
  2. stipends which are paid to fellows

Employees are understood to engage in defined project related tasks and have job titles and job descriptions for which they receive salaries and wages (and are issued W2 forms summarizing their earnings at the end of each calendar year). In accordance with their titles and levels of effort, they may be eligible for fringe benefits. The Research Foundation manages its fringe benefits through a pool. The pool recognizes defined major classes of employees with associated fringe benefit rates. The rates are subject to negotiation and approval by the U.S. Department of Health and Human Services as part of the process by which indirect cost rates are determined. The rates are re-evaluated each RF fiscal year (RF fiscal years run from July 1 to June 30).

Fringe benefit costs are extracted from sponsored projects at the appropriate rate applied to salaries paid independent of an employee's eligibility to receive them.

Fellows are not employees. While Fellows may contribute significantly to sponsored projects, they are understood to be trainees and their support is not for services rendered. They receive stipends as opposed to salaries and wages. Fellows are issued 1099 forms rather than W2 forms at the end of the calendar year. The taxability of their stipends is governed by a complex collection of principles and rulings by the IRS. Fellows receive no fringe benefits by virtue of their appointment, and no fringe benefits are extracted from the sponsored projects which provide their stipends.

For additional information, see the Fellowship Quickguide.

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