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Business Office

Accounts Payable

Payments to Foreign Persons

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 emumford@hamilton.edu with the following information to obtain GLACIER login information:

  • Full name & email address
  • Date check is required
  • Is your visitor traveling on a visa (what type?), visa waiver, or passport?
  • Does your visitor have a U.S. Social Security Number (SSN) or ITIN (Individual Taxpayer Identification Number)?

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:

Erika Mumford
Assistant Controller
emumford@hamilton.edu
315-859-4376

Roxann Jeffers
Disbursements Coordinator
rjeffers@hamilton.edu
315-859-4306

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.

 

Check Requests for Foreign Persons

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.

  • An approved check request.
  • A copy of the visitor's visa and/or passport.
  • A copy of the visitor's I-94 admission record.  The I-94 website provides the visitor's most recent I-94 admission record.
  • Completed GLACIER forms.  GLACIER will determine if payments are taxable (subject to federal tax withholding) or exempt under a tax treaty.  If taxable, specify gross up and/or withhold tax from the payment on the Check Request.  See Tax Withholding and Tax Treaty Exemption below.

 

GLACIER Nonresident Alien Online Tax Compliance System

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 support@online-tax.net with Glacier login information.  The subject line will be “Payments from Hamilton College.”

Glacier Instructions for Accounts Payable

 

Tax Withholding and Tax Treaty Exemption

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:

  • Withhold tax from the payment (visitor will receive payment net of tax withholding), OR
  • Gross up the payment and withhold the tax (visitor will receive the full payment amount).  NOTE:  Grossing up the payment result in an additional charge to your budget.

EXAMPLE:
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

 

Payment Matrix

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.

Visa Status
Sponsoring Institution Is:
Honoraria
Fee for
Services       
Living
Allowance/
Stipends
Wages      
Alien
Registration/
Green Card
N/A: sponsor nor required Yes Yes Yes Yes
B-1/B2

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.

No

No

No

F-1 Hamilton Yes Yes Yes Yes
F-1 Not Hamilton No No No No
H-1 Hamilton Yes Yes Yes Yes
H-1 Not
Hamilton
No No No No
J-1 Hamilton Yes Yes Yes Yes
J-1 Not Hamilton Yes: requires a letter of authorization from
the institution that sponsored the J-1.
No No No
TN (Canada,
Mexico)
Hamilton Yes Yes Yes Yes
TN (Canada
Mexico)
Not Hamilton No No No No
WT/WB NA: sponsor
not required
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.

Cupola