David A. Popper and Claudette B. Stulz - Page 7




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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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