NSF REU

[bast...@umn.edu]

One of my faculty is applying for an NSF REU Supplement, but it is a little unusual. We are submitting for 2 undergrads to work in the lab on the existing NSF project. The email from the Program person says we have to budget the "stipend" for the students in the participant costs category. How do I pay the undergrads from that category since we cannot rebudget out of the participant costs?? Below is the text of the email.....

There is a chance there may be some small end-of-year funds available. If you have a good undergrad or two who would like to work in the lab, we might be able to help. We are especially interested in requests that give research opportunities to students from groups under-represented in science.



If you still have at least one year left on your award, feel free to submit an REU supplement to your current award. By doing so, you are agreeing that if we do not have funds to support your request, you will WITHDRAW the request in a timely fashion, rather than making us decline it. If you don’t have at least a year left on your award, apologies. You can stop reading.



Instructions for writing and submitting an REU Supplement request is in the PAPPG (link provided under my signature block). They should be submitted electronically (using research.gov I think) by using the ‘Supplemental Funding Request” function. Funding decisions will be made on the basis of the justification and availability of program funds with any resultant funding provided through a formal amendment of the existing NSF grant. Supplements are very short (and please have the title “ REU Supplement: The title of your current award.”



Most REU supplements are about $5k-$8k/undergrad. The REU stipend goes under "Participant Support Costs" and does not get indirect costs, though universities can ask for small administrative support costs.

[Seth Goldberg]

We have a NSF REU Supplement.

Undergrads on REU's can be paid in HRMS via the UNS system, essentially as undergrad research fellows and it's possible to set up a combo code that bills to the Participant Cost account code.

They are not paid hourly, but instead a set rate for the "research experience" as they are not considered employees.

[Jillian Rung]

Hey Anjeanette, 

Seth is correct.  

I will say that the College of Science & Engineering has the most REUs that I know of.  When I was in the department of Computer Science & Engineering, we had both an REU Site and 20+ REU supplements.

Historically, there was much debate about how REUs should be paid (for the supplements).  It is imperative that you pay an REU separately from any other job record they may have.  Most payroll appointments in HRMS are made in company UMN.  All fellowships have appointments in UNS (as Seth was saying).  Here is what the program announcement language is for REUs:

"The REU experience is a research training experience paid via a stipend, not employment (work) paid with a salary or wage. In this case, the student's training consists of closely mentored independent research. For administrative convenience, organizations may choose to issue payments to REU students using their normal payroll system. The funds received by students may be taxable income under the Internal Revenue Code of 1986 and may also be subject to state or local taxes. Please consult the Internal Revenue Service (IRS) for additional information. Students might find the IRS's "Tax Information for Education" website to be particularly helpful."

Payroll company UNS is used for stipends.

Please keep in mind if you are awarded the REU supplement, upon hiring your REU, it should be communicated to them that they are being paid a stipend, not a salary, and therefore no taxes are withheld and they are responsible for the tax implications of this stipend.

Additionally, I have also seen where this REU stipend has affected the student's financials.  Meaning, from a student financial perspective, receiving an REU stipend counts as "income" towards their overall financial picture and can result in student loans needing to be refunded to the lender.

I am glad you raised the issue of REUs because it is not a well known issue around the U.  I am happy to share what I know with anyone who has questions.

Link to the program announcement:  https://www.nsf.gov/pubs/2019/nsf19582/nsf19582.htm