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received no other compensation or allowances from the Federal
Government. Although it is true that the Federal Government
reimburses school districts for one-half of the “additional
amount” paid to retired members, the ultimate burden of
disbursing funds and establishing compensation scales lies with
the employing school. See 10 U.S.C. sec. 2031(d)(1); Lyle v.
Commissioner, supra at 674; Tucker v. Commissioner, supra. The
employing institution is responsible for issuing compensation
checks and Forms W-2 to all of its employees.
Because the Federal Government does not assume any kind of
employer status, no portion of the compensation that petitioner
received as a JROTC instructor could be classified as a
subsistence, quarters, or variable housing allowance from the
Armed Forces. Lyle v. Commissioner, supra at 674. The statutory
provision, in conjunction with the implementing directives issued
by DOD, establishes a formula for computing the minimum
“additional amount” of compensation retired military instructors
are entitled to receive from the employing school and the maximum
portion of such “additional amount” that will be reimbursed by
the Federal Government. Id. at 675. The “additional amount” is,
in effect, an inducement offered to persuade retired personnel to
accept employment as JROTC instructors. Id. at 676. Active duty
pay is merely a guideline in determining the level at which JROTC
instructors are to be compensated.
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Last modified: November 10, 2007