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Student - Graduate Fellowship

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Process for Taxation of Payment for a Foreign National

Description

A fellowship is a non-service funding award granted to a student. A graduate fellowship appointment differs from a graduate assistantship in that the student is not required to work; i.e. perform services; as a condition of receiving the funds.

Taxation of Payment

The process described below shows the actions required before a foreign national, who is here on a student fellowship, can receive correct taxation of payment from the University Payroll Department. Fellowship payments are subject to 14% federal income tax withholding unless exempted by a tax treaty.

Responsible People

Three people are involved in this taxation of the payment process. Learn the actions you should take in this process by choosing, who you are, from the following list:

  1. Student on Fellowship
  2. Department Payroll Coordinator or Human Resource representative where the student works
  3. Foreign National Tax Specialist in the University Payroll Office
  1. Student on Graduate Fellowship

    1. Report to the Office of International Services with the following documents:
      • I-94 card
      • Passport
      • Department's offer letter
      • Form I-20 or Form DS-2019 (depends on visa type)
    2. E-mail the foreign national tax specialist to make an appointment to set up your tax withholding.
    3. Apply for a social security number through the Social Security Administration. (SSA)
  2. Note: You must pick up your paycheck at the University Payroll department until your social security number (SSN) is received. After you receive your SSN, you must enroll for direct deposit of your paycheck.

    Note: You are responsible for filing a federal and state income tax return each year. If you finish your assignment and leave the United States, you are still responsible for filing these income tax returns.

  3. Department Payroll Coordinator / HR Representative

    1. Make copies of the student's I-94 card, passport photo page, passport expiration page (if not on photopage), department offer letter, and either Form I-20 or DS-2019.
    2. Assign a dummy social security number if the student does not yet have a SSN. The dummy number should be 899+last six digits of the student's ID number.
    3. Enter the correct job code into the HR system for the student employee. Foreign national students will have a different job code for their fellowships than U.S. citizens.
      • B156 - Graduate Fellowship - NRA
      • B256 - Supplemental Fellowship - NRA
    4. Advise the student to send an e-mail to make an appointment with the foreign national tax specialist in the University Payroll Department.
  4. University Payroll Department's Foreign National Tax Specialist

    1. Meet with the foreign national student to determine tax status.
    2. Make copies of the student's I-94 card, passport photo page, passport expiration page (if not on photopage), department offer letter, and either Form I-20 or DS-2019.
    3. Determine and set up tax status in Windstar and the HR system.

 

Last Edited: December 3rd, 2010