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Research Grant in Lieu of Salary

Research Grant in Lieu of Salary application form 

  

The program permits, under certain conditions, a researcher to receive a research grant in lieu of salary through a mechanism which includes peer review. Given limitations on the amount of funding available to researchers, it is commendable for a researcher to wish to divert some of their salary into a research grant. However, faculty members are cautioned that not all activities automatically qualify as research in relation to tax benefits under this program, and therefore a clear understanding of the relevant guidelines is strongly recommended. 

 

The purpose of the expenditures proposed must be warranted in the context of the research outlined. The grant may be used for all the purposes of a grant-in-aid of research, but not to supplement the income of the principal researcher. The program covers only research activities and, unfortunately, cannot cover projects directed at teaching or the development of teaching-related skills. When the research grant has been established, the funds are no longer considered to be salary but constitute a research grant which is subject to the regulations of the program and the research-related policies of the University. Specific conditions relating to the program are outlined below. 


Grants awarded under this program are considered as taxable income. However, the grant payment will be treated as T4A income for tax purposes and, accordingly, no income tax will be deducted by the University. The award recipient is responsible for reporting the income to Revenue Canada and declaring against it eligible expenditures. 
 
 
ELIGIBILITY 

  • Faculty members, either full-time or part-time, who wish to conduct research during any academic year may be eligible. 

 

GENERAL PROVISIONS 

 

  • Applications may be submitted to the Office of Research Services at any time prior to August 1st, in order for the Office of Financial Services to make the appropriate salary adjustments for the remainder of the calendar year. 
  • Research Grants in Lieu of Salary are capped at $20,000 in any given calendar year. 
  • An applicant should request funding for expenditures to be made in a single calendar year only. Expenditures to be made in subsequent calendar years will require separate applications. Please note that according to the Canada Revenue Agency, research grant related expenses must be incurred in the same calendar year in which the research grant is received in order to be deductible from the grant. Please see the appropriate Canada Revenue Agency Taxation Bulletin for further details. Applicants should bear these matters in mind when applying. 
  • The program uses the calendar year (the normal taxation year) as its base. Subject to Canada Revenue Agency guidelines, the grant must be awarded and paid to the awardee during the calendar year in which the expenses are incurred. An application must be with respect to expenditures made in one calendar year only. 
  • When preparing a submission to the program, an applicant should request an amount with reference to the eligible expense in accordance with the appropriate Canada Revenue Agency Interpretation Bulletin. Except in the case of a faculty member on research leave, the amount of research grant to non-leave applicants should be reasonably commensurate with the value of the reduction in the non-specific research component and/or teaching activities of the faculty member’ normal responsibilities. Moreover, the University will not make any alterations with regard to salary payments already made to the applicant at the time of approval of the award; hence, the grant applied for may not be larger than the amount of unpaid salary less benefits remaining in the calendar year at the time of approval. 
  • An applicant whose application is approved will have his or her salary reduced by an amount corresponding to the total of the grant. Grant payments will be included with the regular monthly salary payment; the gross monthly amount of grant and salary (before deductions) may not exceed the normal gross monthly salary. 
  • Research Grants in Lieu of Salary are awarded as a lump sum payment for the applicable calendar year. The researcher is then solely responsible to the Canada Revenue Agency for all aspects of utilizing this grant, including employing personnel, and complying with all requirements of being an Employer. 
  • The University does not manage a Research Grant in Lieu of Salary on behalf of the researcher, and will not create a research account for this purpose. 
  • The researcher will be informed by letter of the result of the deliberations. Once an award is made, the Financial Services Office will initiate the payment process as outlined in the award letter. The amount of the research grant will be reflected as a reduction in the researcher’s salary and will be reported on an income tax T4A slip. Thus, under this program the researcher’s total payment will be divided into two components: 1) salary and 2) research grant 

 

APPLICATION PROCEDURES 

 

  • All applications must be approved by the Senate Research Committee and the Vice-President (Academic & Research). 
  • Applicants must clearly demonstrate that the proposed activities conform with the Canada Revenue Agency’s definition of research: “Research involves a critical or scientific inquiry aimed at the discovery of new facts, or the development of new interpretations or applications. The words ‘research or any similar work’ may be defined as a set of scientific, literary and artistic works and activities having as its purpose the discovery and development of knowledge.” As such, applications must clearly indicate what specific research questions are being asked or what specific hypotheses are being tested, what research methodologies and data analysis techniques are being used, and the relationship between research activities and proposed budget items. 
  • In completing the application, researchers should provide a description of the research activity which is sufficiently detailed for a determination to be made as to the reasonableness of the proposed expenditures in the context of the research to be carried out. Submissions should be prepared with reference to the eligible expenses outlined in the appropriate Canada Revenue Agency Interpretation Bulletin. 
  • The applicant must clearly demonstrate that some component of his/her normal teaching activities and or non-specific research responsibilities has been sufficiently reduced to accommodate the specific research being conducted. 
  • Travel costs will be allowable for purposes essential to the research outlined. According to Canada Revenue Agency guidelines, researchers may claim only their own expense of traveling between their home in Canada and the place at which they sojourn (temporarily reside) while engaged in research work provided that such travel is essential to the research. Traveling expenses of spouses and children may not be claimed. Researchers are not permitted to claim their own personal and living expenses, including meals and lodging, while sojourning in a place while engaged in research. However, researchers are entitled to claim expenses for meals and lodging, but excluding any personal or living expense, while on brief field trips in connection with their research. Personal moving expenses are not allowable under the program. 
  • Ownership of equipment purchased with funds from a Research Grant in Lieu of Salary vests in the individual grantee. Purchases must be made by the grantee, and not through STU Information Technology Services. 
  • The process of reviewing research grant applications and completing financial arrangements can be a lengthy one and therefore the application form should be submitted to the Office of Research Services for a deadline which leaves two months between the deadline and the date on which the grant is needed. 

 

LEAVING THE UNIVERSITY 
 
If, at any time during the term for which the grant has been made, the grantee ceases to be a member of the University and his or her salary ceases, the grant arrangement will terminate and salary and the grant amount are to be reconciled between the researcher and the University. 

 

PAYMENT OF ASSISTANTS AND OTHER RESEARCH PERSONNEL 
 
Grantees should be aware that applicable employee benefits, such as contributions to the Canada Pension Plan, may have to be paid when paying a salary for an assistant or other research personnel. Such contributions can be taken out of the Grant and can amount to a substantial addition to the salary. In certain cases graduate student assistants may not be subject to income tax withholding; grantees should consult the Office of Financial Services in this regard. 
 

TAX INFORMATION 
 
Please note that although the University approves a Research Grant in Lieu of Salary: 

  1. The question of the deductibility of expenses for income tax purposes must be in accordance with Canada Revenue Agency regulations and such deductions should be claimed when the researcher files his or her personal income tax return. 
  • Any questions with respect to the eligibility of expense deductions must be resolved between the researcher and the Canada Revenue Agency.  
  • The researcher is solely responsible for any additional income tax which may become payable as a result thereof.  
  • The researcher is not required to submit an accounting for these funds to the University; but since it is the responsibility of the researcher to support claims for deductions to the Canada Revenue Agency, researchers should keep detailed records of research expenditures.  
  • The university is not in a position to offer any more detailed tax information than that which is contained in the appropriate Canada Revenue Agency Interpretation Bulletin, nor will the University assist the faculty member in the presentation of a case to the Canada Revenue Agency.  

  • Any questions about taxation regulations should be referred directly to the Canada Revenue Agency or to an external tax advisor. 

REPORTING 
 
Completing reports of research or scholarship conducted, together with copies of publications, other publicly available documentation, descriptions of conference presentations, or other results of the work undertaken, are required before subsequent applications for research grants in lieu of salary, or compensated release time, can be considered by the Senate Research Committee.