Payments to foreign persons are complicated due to immigration and tax laws. A foreign person includes a nonresident alien individual, foreign corporation, foreign partnership, foreign trust, a foreign estate, and any other person that is not a U.S. person.
Hamilton College is required by law to determine the legality of payment to the foreign person based on his/her immigration status (see Payment Matrix below) and the appropriate rate of tax withholding and reporting required for such payments. The College uses the GLACIER Nonresident Alien Online Tax Compliance System for payments to foreign persons for the purposes of tax withholding and reporting.
Email Erika Mumford at email@example.com with the following information to obtain GLACIER login information:
The Business Office is located on the second floor of the Philip Spencer House.
Office hours are:
Monday through Friday
from 8:30 a.m. to 4:30 p.m.
Please contact the following if you have any questions:
If the foreign person does not have a U.S. SSN or ITIN, all payments, with the exception of travel reimbursements, will be subject to tax withholding. See Tax Withholding and Tax Treaty Exemption below.
Corporations and Other Entities
Email Erika Mumford at firstname.lastname@example.org with the following information:
Payments for activities and services that are performed outside of the U.S. are classified as "foreign source" and are not subject to U.S. tax. Email Erika Mumford at email@example.com with the following information:
NOTE: Payments for royalties and license fees are sourced where it is exercised or used and in most cases will be classified as U.S. taxable income subject to withholding.
To ensure your payment is available by the date required, submit the following items to the Accounts Payable Office at least one week prior to the event. The check request deadline is Monday by the close of business. Checks are available by Friday.
GLACIER Online Tax Compliance System collects, transmits, and stores your visitor's information securely for Hamilton College for the purposes of tax withholding and reporting. Information provided to GLACIER is transmitted and stored securely and will only be used by Hamilton College for purposes of tax withholding and reporting.
Foreign persons who receive payments from Hamilton College (including fellowships, honoraria or guest speaker fees, performance fees, prizes, awards, etc.) are required to use this system.
Your visitor will receive an email from firstname.lastname@example.org with Glacier login information. The subject line will be “Payments from Hamilton College.”
If GLACIER determines the payment is exempt from tax withholding, GLACIER will generate the required forms. To claim an income tax treaty exemption, your visitor must sign and return the GLACIER Tax Summary Report and all required forms and document copies (e.g. I-94 admission record, visa/passport, etc.).
If payments to your visitor are taxable (subject to federal tax withholding), we are required to withhold the appropriate rate of tax from the payment. Typically the tax withholding rate is 30%. When submitting a check request, specify withhold tax OR gross up as follows:
To gross up a $500 payment, the check request would be prepared as follows:
|13 Digit Acct. No||Amount|
|xx-x-xxxxxx-xxxx||$ 714.29||Amount charged to department including federal tax withheld.|
|To calculate, divide the desired payment amount by 70%|
|10-0-000001-2130||($ 214.29)||Federal taxes withheld 30%|
|Total||$ 500.00||Net amount paid|
To withhold tax from a $500 payment, the check request would be prepared as follows:
|13 Digit Acct. No||Amount|
|xx-x-xxxxxx-xxxx||$ 500.00||Amount charged to department|
|10-0-000001-2130||($ 150.00)||Federal taxes withheld 30%|
|Total||$ 350.00||Net amount paid|
Immigration law addresses whether it is legal to make a payment to a foreign person for services performed within the US. This determination is based on visa classification and type of payment involved. Refer to the matrix below for guidance.
Sponsoring Institution Is:
|N/A: sponsor nor required||Yes||Yes||Yes||Yes|
N/A: sponsor not required
|Yes: individual must sign a statement attesting that his visit at Hamilton will not exceed 9 days and he/she has not received more than 5 honoraria in last 6 months.||
Yes: requires a letter of authorization from
the institution that sponsored the J-1.
|Yes: See requirements under B-1/B-2||No||No||No|
|Other Visas||Contact Erika Mumford at ext. 4376 prior to making any agreements.|
For questions, please contact Erika Mumford at ext. 4376.