<aside> ⭐ This information sheet is designed to provide information about the AmeriCorps living allowance to payroll and human resources staff at higher education institutions.
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AmeriCorps is the federal agency for national service and volunteerism. Every year, approximately 75,000 AmeriCorps members serve organizations in communities across the United States. Individuals who serve through AmeriCorps receive a monthly living stipend and, at the end of their service term, an education award they can use to cover the costs of college or graduate school.
Colleges and universities across the country are partnering with AmeriCorps to provide transformational learning experiences for students while supporting local communities. Students serving in AmeriCorps may be hired and paid through an institution’s human resources and payroll systems, but the rules that govern AmeriCorps positions may differ from the rules applied to other positions at the institution.
AmeriCorps positions are funded by grants from the federal government or intermediary organizations. The federal government determines requirements for living allowances and benefits.
The living allowance is a modest allowance AmeriCorps members receive to cover basic expenses during the service term. There are minimum and maximum living allowances for each AmeriCorps State and National member slot type. These are set in the annual Notice of Funding Opportunity.
A living allowance is not a wage and programs may not pay living allowances on an hourly basis. Programs must distribute the living allowance at regular intervals and in regular increments, and may increase living allowance payments only on the basis of increased living expenses such as food, housing, or transportation. Living allowance payments may only be made to a participant during the participant's term of service and must cease when the participant concludes the term of service. Programs may not provide a lump sum payment to a participant who completes the originally agreed-upon term of service in a shorter period of time. (§ 2522.245)
It is important to understand that AmeriCorps State and National members are not legally defined as employees per statute and regulations. This compilation of citations from AmeriCorps has more information regarding the legal definition of AmeriCorps members as a “participant” in a national service program.
While AmeriCorps members are not employees, you are required to withhold FICA and applicable income taxes and would issue a W2 to the AmeriCorps member for the purpose of them filing their taxes. The FY23 AmeriCorps State and National Specific Terms and Conditions cover this on pg. 12-13 including information on worker’s compensation and unemployment insurance.
Organizations will need to determine how to setup their AmeriCorps members in their existing payroll system or whether they want to procure a separate payroll system used exclusively for their AmeriCorps program. In some cases, procuring a separate system is the easier route given the complexity and requirements of some higher education payroll systems that do not align well with AmeriCorps grant requirements. If using your institutions payroll system, you may need to be creative on the selected classification. For example, Rutgers University Camden shared it classifies AmeriCorps State members as "non-employees"/"non-research service fellowships" in their payroll system.
Time and effort for AmeriCorps members must be documented for hours served in accordance with Uniform Grant Guidance. Many AmeriCorps programs will procure a separate time keeping system that is designed specifically for AmeriCorps State and National programs. Alternatively, you can work within your existing timekeeping system. Timesheets must be signed by a supervisor and should document high-level activities. Page nine of the FY23 AmeriCorps State and National Specific Terms and Conditions state, “The recipient is required to ensure that time and attendance record keeping is conducted by the AmeriCorps member’s supervisor. This time and attendance record is used to document member eligibility for in-service and post service benefits. The recipient must have a timekeeping system that is compliant with 2 CFR § 200.430.”
FEDERAL WORK-STUDY STUDENTS.—The living allowance that may be provided under paragraph (1) to an individual whose term of service includes hours for which the individual receives a Federal work-study award under part C of title IV of the Higher Education Act of 1965 (42 U.S.C. 2751 et seq.) shall be reduced by the amount of the individual’s Federal work study award. (42 U.S.C. 12594, Section 140 (3))