In order to assist faculty with the potential tax burden associated with grant-generated supplemental income, the Grants and Contracts, Human Resources and Business Services Offices have agreed to the following summer salary distribution policy
Faculty receiving salaries from external research grants for work conducted during the summer months may, for the duration of the grant, elect one of the following options:
- Retain the standard payment schedule of academic salary distribution over 12 months. Elect to have the supplemental pay distributed over two, three or four months between May and August.
- Request distribution of the academic year salary over ten months and distribution of the stipend or supplemental pay over two summer months. To adjust the standard payment schedule for academic salary, Human Resources before August 15th of the calendar year preceding the summer grant.
Please submit a completed Grant-funded Supplemental Pay Form to the Grants and Contracts Office on or before May 15th indicating your preference for distribution of your supplemental pay. A separate form must be completed for each year's salary distribution. Please contact the Grants Accountant for exceptional distribution needs.
Stipends and supplemental pay could cause the rate of taxation to increase during the months these funds are received. Faculty may also adjust W4 tax forms to increase the number of deductions for the duration of the grant. When the stipend or supplemental pay is no longer being received, W4 tax forms can be reverted to the standard number of deductions. Please contact Rene Baker (x2461) in the Business Services office if you plan to adjust the number of deductions.
Last revised: October 2010