Below are some frequently asked questions from administrators about the Glacier nonresident tax compliance system.
If your department is making a payment of income to a non-resident vendor and services are being performed in the United States in exchange for that payment, a Glacier record needs to be completed to determine the necessary withholding. A Glacier record is also necessary for payments of royalties and subscription services to non-resident vendor.
A Glacier record can be requested by completing a Glacier account request form and emailing it to email@example.com.
The type of payments made could include:
- Compensation wages (Income paid as a Teaching Assistant, Research Assistant, Reader or Grader)
- Fellowship income not applied to tuition fees
- Consulting Fees
- Performance Fees
- Software Licenses and Subscriptions
When a payment subject to withholding is made to a non-resident without a completed Glacier record, 30% will be automatically withheld from their payment for federal income taxes. The department can also elect to gross up the payment and pay the tax on behalf of the recipient.
If the payment is subject to non-resident withholding, the department will be charged for the federal income taxes that is not withheld on the payment.