Guidelines for Completing
Reasonable Compensation Form

• Because of the Tax Reform Act of 1986, it is necessary for the Graduate School to maintain documentation demonstrating that the stipends paid to graduate assistants are reasonable compensation for the services which they perform. Therefore, if the graduate assistant is eligible for a tuition scholarship, the scholarship is not counted as taxable income. The stipend amount for an assistantship should be based only on the services performed and should not include a tuition scholarship or a fellowship.
• Every department or unit which employs graduate assistants must complete the Reasonable Compensation Form.
• On the form please provide a general statement describing such factors as required number of working hours per week, duties performed, and monthly stipend(s) paid for graduate assistantships offered by your department.
• All graduate assistants should be paid equal to or greater than the amount indicated on the form as reasonable compensation. Details should be provided on the comparison of hiring a non-TA, RA, or GA with comparable credentials to perform the same duties. The local market value of service performed is particularly important and should be well documented. In your explanation, include the formula you used in determining reasonable compensation.
• The Graduate School will not provide tuition scholarships to a program or unit unless reasonable compensation information is on file in the Fellowship Office.
• If a graduate assistant is not paid minimum reasonable compensation based on what was submitted by the hiring department, the student is not eligible for a tuition scholarship.