There are two types of payments to research personnel, stipend and salary.
A stipend is a fixed payment made to an individual registered in a graduate program for the individual’s living expenses during a period of training. To be considered in training, the individual shall be actively involved in the research of a faculty member in their related area of studies whereby he/she is gaining experience in a particular research field by virtue of his/her research assistant-ship. It is not paid in exchange for quantifiable work performed nor for financial gain. There are no deductions at the time of payment, and the individual will receive a T4A for the amount paid during the calendar year. Only graduate students and postdoctoral fellows may be paid a stipend.
A salary is paid when an employee/employer relationship exists and a quantifiable amount of work has been performed. Salary payments, whether hourly, recurring, or lump sum, are subject to mandatory source deductions and will include 4% vacation pay. Personnel with this type of income will receive a T4 denoting the total amount of employment earnings paid during the calendar year.
Carleton does not have established maximum rates of pay for research personnel (minimum rate of pay must follow minimum wage).
For all individuals paid a salary, the researcher must budget for additional costs, above and beyond the rate of pay to the individual, which will be charged to the grant. Statutory Deductions include the employer contributions to mandatory deductions, including Canada Pension Plan and Employment Insurance, as well as Vacation Pay.
For example, an hourly rate of $25/hr has been promised to the research personnel, which means that the researcher’s account will be charged as follows:
Statutory Deductions (includes 4% Vacation Pay)
|Discretionary Benefits, if applicable*||Amount Charged to the Fund|
10% to 11%
Up to $31.50
*Discretionary benefits may be included at the request of the researcher in consultation with their research personnel. Discretionary benefit rate may vary based on the individual’s circumstances. The Research Office recommends assuming a rate between 10 and 11%