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Business Office

Accounts Payable

Payments to Foreign Nationals
GLACIER Nonresident Alien Online Tax Compliance System
Tax Withholding and Tax Treaty Exemption
Payment Matrix

Payments to Foreign Nationals

Payments to foreign nationals are complicated due to immigration and tax laws. Please contact Erika Mumford at ext. 4376 or emumford@hamilton.edu to set up a Glacier account for the payee.

GLACIER Nonresident Alien Online Tax Compliance System

The Internal Revenue Service (IRS), the U.S. government tax authority, requires Hamilton College to collect information from all non-U.S. citizens and non-permanent resident aliens to determine the appropriate rate of tax withholding and reporting for any payments that may be made to such individuals.

GLACIER Online Tax Compliance System collects, transmits, and stores information securely for Hamilton College for the purposes of tax withholding and reporting.

All non-U.S. citizens and non-permanent resident aliens who receive payments from Hamilton College, including fellowships, honoraria or guest speaker fees, performance fees, prizes, awards, etc. are required to use this system.

All non-U.S. citizens and non-permanent resident aliens who receive payments from Hamilton College will receive an email from support@online-tax.net that contains login information.  The subject line will be “Payments from Hamilton College.”  Access GLACIER and provide the requested information within 10 days of receiving the GLACIER login information email.  Information and forms must be provided prior to any payment.  Failure to do so may result in delayed payment.

Glacier Instructions for Accounts Payable

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Tax Withholding and Tax Treaty Exemption

If the U.S. has a Tax Treaty with the individual's country, the individual may be exempt from tax withholding. If the individual is eligible for an Income Tax Treaty exemption, we must receive the signed Tax Summary Report, Form 8233, the Official Attachment to IRS Form 8233/Honoraria Statement and copies of all of the required documents listed on the Tax Summary Report. This typically includes Form I-94 and Visa Stamp/Sticker (in passport). 

If the U.S. does not have a Tax Treaty with the individual's country, the applicable rate of tax withholding will be deducted from the payment. Typically, the tax withholding rate is 30%.

When submitting a check request for a payment to a foreign national, please indicate if Hamilton agrees to pay the tax on the individual's behalf or if the 30% U.S. federal tax is to be withheld from the individual's payment.  For example:

If Hamilton pays the U.S. federal tax on a $500 payment to a foreign national, 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 foreign national

 

 






If the US federal tax is withheld from the foreign national's 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 to foreign national

Submit all of the required forms and document copies together with a Check Request to Erika Mumford in the Business Office.

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Payment Matrix

Immigration law addresses whether it is legal to make a payment to a foreign national 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 x-4376 prior to making any agreements.   

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For questions, please contact Erika Mumford at ext. 4376.

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