- 6 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 NextLast modified: November 10, 2007