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Comptroller's Office
University of Pennsylvania
Suite 329 Franklin Building
3451 Walnut Street
Philadelphia, PA 19104
215.898.1552 (Phone)
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[ Payroll ]

Guide to Graduate Student & Post-Doctoral Appointments

* Download the Appointment Information Form

This document defines Graduate Student and Post-Doctoral Appointments at the University of Pennsylvania and is a guide for business administrators on the current taxability of payments to the student or researcher. All individuals appointed in the job classes listed on this document must receive letters of appointment that define the length of the appointment, the level of funding, and the services expected.

Graduate Student Appointments

The following appointments are limited to persons registered for full time study in the graduate or professional programs of the University of Pennsylvania. Service-related appointments are for one year or less; however, they may be renewed if the renewal is consistent with limits placed on the length of service for the rank. Service-related appointments do not on average require more than 20 hours of teaching or research services per week.

Teaching Assistant - A Teaching Assistant is a full-time graduate student enrolled in a degree program who teaches or guides students under the direction of a faculty member. The teaching assistant’s duties are not a requirement for the degree.

The stipend is subject to Federal income tax and Pennsylvania personal income tax. One-half of the stipend is also subject to City of Philadelphia wage tax. In addition, as a full-time graduate student, a Teaching Assistant’s stipend is exempt from FICA/Medicare tax.

The following information should be entered into the Personnel/Payroll System for Teaching Assistants:

Teaching Fellow - A Teaching Fellow is a full-time graduate student appointed to provide teaching or guidance of students directly related to the area in which his or her degree is to be conferred, and in which equivalent teaching is required of all candidates as a condition for receiving such a degree.

The stipend is subject to Federal income tax, but not Pennsylvania personal income tax. One-half of the stipend is also subject to City of Philadelphia wage tax. In addition, as a "full-time" graduate student a Teaching Fellow’s stipend is exempt from FICA/Medicare tax.

The following information should be entered into the Personnel/Payroll System for Teaching Fellows:

Research Assistant - A Research Assistant is a full-time graduate student engaged to aid the research of an investigator or a member of the faculty. The work, even if carried out in the home department, is not a requirement for the degree. A Research Assistant's stipend is subject to Federal income tax and Pennsylvania personal income tax. One-half of the stipend is subject to City of Philadelphia wage tax. In addition, as a full-time graduate student a Research Assistant’s stipend is exempt from FICA/Medicare tax.

The following information should be entered into the Personnel/Payroll System for Research Assistants:

Research Fellow - A Research Fellow is a full-time graduate student appointed for research directly related to the area in which his or her degree is to be conferred and in which equivalent research is required of all candidates as a condition for receiving such a degree. The stipend is subject to Federal income tax, but not Pennsylvania personal income tax. One-half of the stipend is also subject to City of Philadelphia wage tax. In addition, as a full-time graduate student a Research Fellow’s stipend is exempt from FICA/Medicare tax.

The following information should be entered into the Personnel/Payroll System for Research Fellows:

Educational Fellowship Recipient - An Educational Fellow is a full-time graduate student enrolled in a degree program. An Educational Fellow receives a fellowship that is normally paid from University of Pennsylvania funds, such as a dean’s account or the University Fellowship fund, that requires no service of the student for the term of the appointment. Amounts paid to such students are to aid them in the pursuit of their studies, the primary purpose of which is to further the students' education and training. Since an Educational Fellow is not required to perform services, the University is not currently required to withhold Federal income tax, FICA/Medicare tax, Pennsylvania Personal income tax, or City of Philadelphia wage tax or report any payments on IRS Form W-2.(3)

The following information should be entered into the Personnel/Payroll System for Educational Fellowship Recipients:

Pre-Doctoral Trainee - A Pre-Doctoral Trainee is a full-time graduate student enrolled in a degree program, who participates in training programs directly related to his/her degree. A pre-doctoral trainee receives a fellowship that is paid from external grants but that requires no service of the student for the term of the appointment. The normal source of funding is a U.S. government training grant (i.e. an N.R.S.A. institutional or individual grant). A Pre-Doctoral Trainee does not perform services for the University, but may engage in research to further his or her personal and professional development. Since no services are required by the individual, the University is not currently obligated to withhold Federal income tax, FICA/Medicare tax, Pennsylvania personal income tax, or City of Philadelphia wage tax or report such payments on IRS Form W-2 (3).

The following information should be entered into the Personnel/Payroll System for Pre-Doctoral Trainees:

Job Class	U.S. Earnings Type	Nonresident alien Earnings Type	Object Code/Sub Code
217801	GF2	See footnote (4)	5045/137

Post-Doctoral Appointments

Post-Doctoral Researcher - A Post-Doctoral Researcher is an individual who comes to the University for the principal purpose of furthering his/her personal development by engaging in research programs. A post-doctoral researcher holds a post-baccalaureate degree, normally the highest degree earned in the field. The normal source of funding is a research grant. Since research services are required, the Post-Doctoral Researcher's stipend is subject to Federal, FICA/Medicare, State, and City of Philadelphia taxes. A part-time EB rate will be charged for this position.(5)

The following information should be entered into the Personnel/Payroll System for Post-Doctoral Researchers:

Job Class	U.S. Earnings Type	Nonresident alien Earnings Type	Object Code/Sub Code
217500	PD4	For Tax Office use only!	5047/141

Post-Doctoral Fellow (6) - A Post-Doctoral Fellow is an individual who comes to the University for the principal purpose of furthering his/her personal development through participation in advanced training programs. The post-doctoral fellow holds a post-baccalaureate degree, normally the highest degree earned in the field. Funding is provided by a private foundation or non-profit charitable organization such as the American Heart Association, American Cancer Society, and similar type organizations exempt from federal income tax under section 501(a) of the Internal Revenue Code. A Post-Doctoral Fellow’s stipend may not be supplemented by funding from a research grant. A Post-Doctoral Fellow’s stipend is subject to Federal income tax, and City of Philadelphia wage tax. In order to be exempt from Pennsylvania personal income tax and FICA/Medicare tax, there can not be any quid pro quo in connection with the award.

The following information should be entered into the Personnel/Payroll System for Post-Doctoral Fellows:

Job Class	U.S. Earnings Type	Nonresident alien Earnings Type	Object Code/Sub Code
217603	PD3	For Tax Office use only!	5043/135

N.R.S.A. Post-Doctoral Fellow - N.R.S.A. Post-Doctoral Fellows are individuals who come to the University for the principal purpose of furthering their personal development through participation in advanced training programs. They hold post-baccalaureate degrees, normally the highest degree earned in the field. The source of funding is an individual or institutional National Research Service Award from the federal government to support the individual’s training. An N.R.S.A. Post-Doctoral Fellow’s stipend is subject to Federal income tax, and City of Philadelphia wage tax, but is currently exempt from Pennsylvania personal income tax and FICA/Medicare tax.

The following information should be entered into the Personnel/Payroll System for N.R.S.A. Post-Doctoral Fellows:

Job Class	U.S. Earnings Type	Nonresident alien Earnings Type	Object Code/Sub Code
217703	PD3	For Tax Office use only!	5043/135

Business administrators should exercise care in assigning students and post-doctoral candidates to these categories. Any questions concerning the taxability of an award should be directed to:
The Corporate Tax Office (extension 8-8967; or 8-6573 ). Questions concerning the guidelines of governmental or private agency post-doctoral awards should be directed to the Office of Research Administration (extension 8-7293). Failure to follow these guidelines could result in the University’s facing an unwarranted tax liability for which the school or department shall be held responsible.

Footnotes:

(1) Due to the complexity of U.S. tax laws concerning Nonresident Aliens, the earnings type must be entered by tax office personnel.

(2) For summer teaching/research assistant appointments only! (For students that are not enrolled in summer courses). This job class will be subject to FICA/Medicare tax and a part-time EB rate will be charged. (See footnote 5!)

(3) Although no reporting or withholding is required for U.S. students, the students must report and pay federal income tax on any payments in excess of tuition, fees, books, and certain other expenses. Further, there are special rules for international students. All Educational Fellowship grants to international students must be reported on IRS Form 1042S. If the student is not from a tax treaty country, then federal income tax must be withheld from the stipend allowance at 14%. Those students from tax treaty countries that have a provision for scholarships and fellowships, may claim exemption from withholding by completing Form W-8BEN. For information on international students, please consult the Foreign Student Tax Guide.

(4) Foreign individuals on temporary or student visas are not eligible for N.R.S.A. institutional or individual awards under U.S. Department of Health and Human Services guidelines.

(5) The Office of the Comptroller will waive the part-time EB charge for graduate students and Post-Doctoral Researchers for a one year period from July 1st, 1997 to June 30th, 1998. Effective July 1st, 1998 a part-time EB rate will be charged on all graduate student and post-doctoral appointments that are subject to FICA/Medicare tax.

(6) The Post-Doctoral Fellow appointment can not be used, for federal grants and contracts where research services are required under OMB Circular A-21.