Glacier and tax withholding on student accounts
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GLACIER And Tax Withholding On Student Accounts. University of Arizona FSO-Tax Compliance June 2011. Who Is Taxed On Student Account. With Treaty Exemption. No. Nonresident Aliens For Tax Purposes. Without Treaty Exemption. Taxed. Foreign Students. Resident Aliens

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GLACIER And Tax Withholding On Student Accounts

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Glacier and tax withholding on student accounts

GLACIER And Tax Withholding On Student Accounts

University of Arizona

FSO-Tax Compliance

June 2011


Who is taxed on student account

Who Is Taxed On Student Account

With

Treaty Exemption

No

Nonresident Aliens

For Tax Purposes

Without Treaty

Exemption

Taxed

Foreign

Students

Resident Aliens

For Tax Purposes

No


What can glacier do

What Can GLACIER Do?

GLACIER determines if a foreign student is:

  • Resident Alien or Nonresident Alien for tax purposes

  • Qualified for treaty exemption

    Based on this information, we can determine whether we should tax the student


Who is required to use glacier

Who Is Required To Use GLACIER

  • Tax Compliance identifies students required to use GLACIER:

    -- Coded as International Student in UAccess

    -- Receive scholarship/stipend awards that exceed tuition and required fees

  • GLACIER administrator sends out an email through GLACIER to the student with login information


Glacier tax file status

GLACIER Tax File Status

  • I – Incomplete - student has not input any information in GLACIER, the record is incomplete

  • W – Waiting - student has input information in GLACIER, but has not submitted the required tax forms and documents, waiting for documents

  • C – Complete - student has input information in GLACIER and submitted all necessary documents, the file is coded “complete” by a GLACIER administrator (Payroll, ISPS and Tax Compliance)


Bgh service indicator for tax withholding in uaccess student

BGH Service Indicator For Tax Withholding In UAccess Student

  • A BGH service indicator is placed on every international student’s account unless the student is a resident alien or is granted income tax treaty benefits

  • When a NRA student without treaty benefits has a refundable credit, the student account is reviewed to determine if taxes need to be withheld

  • Once a tax assessment has been made, the BGH is temporarily released to allow the student to receive the funds

  • After the funds are released, the BGH is placed back on the student account


How does it work

How Does It Work?

PeopleSoft Query - a daily report that identifies students who:

  • Have a BGH Service Indicator

  • Have a credit balance

    These are the students we need to check in tax calculation program before the funds can be released


How to calculate the tax

How To Calculate The Tax?

  • UAccess Student International Student Tax Calculation Program –an automatic program to calculate YTD tax

  • Total Taxable (scholarship) Income

  • Total Tax Amount

  • Total Taxed To Date

  • Net Tax to Apply


How does the program work

How Does The Program Work?

What transactions are included in the calculation?

  • (A) Tuition charges and required fees to attend class or the University

  • (B) Tuition waivers/remissions, stipends, and scholarship awards

  • Total Taxable Income = (B) - (A)

  • Tax Rate: 14% mostly, 30% in some case, depending on student’s visa type


More to know

More To Know…

  • Students receiving cash awards do not have to be taxed – if the awards plus waivers are less than the tuitions and require fees – no taxable income

  • Total Taxable Income is subject to change during the year depending on the timing of charges and awards posted


Who assesses tax withholding

Who Assesses Tax Withholding

  • Bursar – A/R assesses tax for batch checks/ACH transfers, based on the daily report

  • Bursar’s representatives assess tax on manual refund checks issued to walk-in students

  • Tax Compliance periodically reconciles the taxable income and taxes


Role of isps international students and programs service

Role Of ISPS (International Students And Programs Service)

  • ISPS does not place or remove BGH Service Indicator in UAccess Student

  • ISPS does not withhold tax on student accounts

  • ISPS acts as liaison for Tax Compliance and International Students for questions regarding the BGH Service Indicator and tax being withheld on scholarships


Summary who does what

Summary: Who Does What

  • Tax Compliance: determines what is taxable (UAccess Student International Tax Calculator), who should use GLACIER, who should be taxed, and replaces & removes BGH when necessary

  • Bursar: charges applicable taxes, disburses funds, and removes & replaces BGH when necessary

  • ISPS: acts as liaison to answer student’s questions regarding tax withholding and BGH Service Indicator; receives tax documents


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