PURDUE UNIVERSITY
OFFICE OF THE PRESIDENT
EXECUTIVE MEMORANDUM No. C-15
To: Deans, Directors, and Heads of Schools, Divisions, Departments,
and Offices, and Regional Campus Chancellors
Re: Graduate Student Employee Compensation Restructuring
EFFECTIVE DATE: Summer 1988
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.
POLICY:
- 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.
PROCEDURE:
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.
QUESTIONS:
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
President
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