Miscellaneous payments represent a broad category and, for Vanderbilt purposes, include prizes, awards, and payments for human subject participation. Almost all miscellaneous payments will require 30% tax withholding for international persons. In addition, tax treaty benefits rarely apply to miscellaneous payments.
Payments to international persons that are categorized as prizes, awards, or for participation is research studies or clinical trials are taxable. International employees receiving these payments must create a GLACIER record or update their GLACIER record to show the payment. International persons who are non-employees must complete an online Business Visitor Questionnaire (BVQ) and may also need to complete GLACIER.
A separate discussion on payments to Human Subject Participant in clinical trials or research studies can be found by clicking here.
Note : Persons in H-1B status are not permitted to receive compensation for services from any party except the H-1B sponsor. A Vanderbilt sponsored H-1B employee can participate in research or clinical studies and receive compensation. However, a person in H-1B status, who is not sponsored by Vanderbilt, cannot receive compensation from Vanderbilt for participating in research or clinical studies.
In all cases, GLACIER must be completed before any payment can be processed regardless of the amount of the payment. GLACIER recognizes that many participants in clinical trials or research studies will receive very small payments, and normally payments under $30.00. Under IRS regulations, no matter how small the payment, if the payment is subject to taxation, Vanderbilt is required to withhold taxes. Visit De Minimis Fringe Benefits for more information.
If the department wishes to have the international individual receive the face value of the payment, regardless of the tax, then a request to have the payment "grossed up" must be made. The department needs only to write "GROSS UP" in a prominent place on the check request form.
Reimbursements for Business Purchases
Reimbursement for items purchased for Vanderbilt business purposes (e.g. office supplies, items for a business lunch or other function) are considered business expenses. Business expenses are not deemed taxable income to the individual seeking reimbursement for the purchases. International individuals receiving reimbursements of this type do NOT need to complete GLACIER.
A royalty is a financial proceed paid to a contributor out of the proceeds that result from a sale or performance of that individual’s work. It is also a share in the proceeds paid to an inventor for the right to use the invention.
If an international person will be receiving royalty payments from Vanderbilt University, the department administrator must request GLACIER access so that a GLACIER record can be created. The GLACIER access request can be made on our website. In addition, the department administrator should do the following:
- The payment recipient will receive an email from the International Tax Office (firstname.lastname@example.org) that will include directions for the GLACIER system and account log-in information. Please let the recipient know to expect the email.
- Send the check request (CR) through the normal process. Disbursements will route the CR to ITO analysis.
- Include information with the CR to demostrate whether the payment is for an industrial or copyright royalty.