Payments to J-1 exchange visitors on a longer-term visit typically fall into one of two categories: non-service fellowship or dependent compensation.
Dependent compensation is wages or salaries paid for services performed under the direction of a TU supervisor. The J-1 visitor receiving dependent compensation will follow the normal hiring process, including I-9 processing, and will be set up on payroll as an employee of Towson University . Payroll payments are subject to graduated withholding plus an additional $15.30 per bi-weekly payroll cycle.
In a non-service fellowship, no services are required of the recipient in order to receive payment. The recipient, rather than the university, is the primary beneficiary of the scholarly activity performed. Payment might take the form of periodic stipends and/or travel payments/reimbursements. Travel payments/reimbursements that are part of a non-service fellowship are fully taxable. To process a payment request:
Prepare Miscellaneous Expense Voucher.
Attach supporting documentation describing the fellowship program. This provides justification for the payment as well as information to determine the income category.
Payments are subject to 14% nonresident alien tax withholding unless exempt by tax treaty.
Without supporting documentation of fellowship, tax withholding will default to 30%.
Send to Accounts Payable.
In all cases, the J-1 exchange visitor will be required to create a record in GLACIER before payment is made.