A reminder regarding the processing of documents for tuition remission (SS2):
Individuals receiving tuition remission from sponsored projects may only do so when the recipient is performing necessary work toward the project being funded. This requirement is outlined in OMB Circular A-21. As a result, all tuition remission funded from sponsored projects must be treated as wages. The only exception to this rule is tuition remission from a training grant in which the primary purpose of the award is to fund student learning. Whenever possible, use SS1 documents to process this tuition as a scholarship/fellowship instead.
When processing an SS2 for tuition remission on a sponsored project, the processor must mark the “Duties Required” question as “Y” for Yes. Currently under university policy, tuition remission paid as wages is considered as part of gross pay and is subject to Federal Income and Social Security withholding taxes. For more information on university policy related to tuition remission please visit:
Handbook of Operating Procedures and Policy Memorandum Chapter 8
http://www.utexas.edu/policies/hoppm/pm8203.htmlTuition Remission FAQs
http://www.utexas.edu/business/accounting/sar/remissionfaq.html
Further explanation with references is provided for you here:
http://www.utexas.edu/research/osp/documents/tuition_remission_ss2.pdf
Any tuition remission payment processed as requiring duties is included in the effort certification process conducted semi-annually. For more information on effort certification, please visit http://www.utexas.edu/research/osp/spaa/effort_reporting.html.
If you have any questions about this information, you may contact us at effort@austin.utexas.edu or by phone at 471-3545.