Graduate Student Employee Compensation Restructuring (C-15)
OFFICE OF THE PRESIDENT
EXECUTIVE MEMORANDUM No. C-15
March 28, 1988
To: Deans, Directors, and Heads of Schools, Divisions, Departments, and Offices, and Regional Campus Chancellors
Re: Graduate Student Employee Compensation Restructuring
At its meeting on March 18, 1988 the Board of Trustees approved the restructuring of the graduate student employee compensation package necessitated by the Tax Reform Act of 1986 which made fee remissions taxable effective January 1, 1988.
- A new student fee category has been established for graduate student staff employed as teaching or research assistants, and those classified as graduate student administrative and professional. This new fee is without regard to residency classification.
- All but a small portion of fees assessed graduate staff will be remitted.
- The value of the fee remission will be reported to IRS as part of the compensation of graduate staff in accordance with the new tax law.
- The salaries of individuals employed in these categories are to be increased by an amount to offset the increased tax liability which will be withheld from their paychecks.
- The amount of fee remissions charged to sponsored programs will be reduced to recognize the lower amount of remissions, effective with the implementation of the fee category.
As soon as finalized, specific details of the procedures necessary to implement the above policies will be communicated to you by the appropriate offices involved.
General questions concerning the restructuring of graduate student staff compensation should be directed to your Business Administrator on the West Lafayette Campus or the Chief Business Officer at the Regional Campuses. Specific questions concerning withholding and application of the new tax law should be directed to the department of Staff Benefits, Payroll and Insurance.
Steven C. Beering