Bryn Mawr College

Payment Procedures

 

Summer Funding is processed in one of two ways, either as (1) internship funding or as (2) fellowships, according to definitions set forth by the IRS.

*  International Students:  College Summer Funding with no additional source of income does not require Optional Practical Training (OPT) authorization. Students with F-1 Visas must consult the Office of International Programs for advising in order to receive College Summer Funding.

 

(1) INTERNSHIP FUNDING AWARDS:

(a)  Required Paperwork

Summer internship funding awards are processed through student payroll.

If you have never been an employee of the College or have not worked for the College in the last two (2) years, you MUST go through the student New Hire process. You will need to complete an I-9, a W-4 and a Direct Deposit form. Please consult your Award Letter for more information.

Additional required paperwork, available from the funding program:

• Summer Funding Award Letter
• Summer Funding Release
• Sponsor Conformation Form

 

(Note that timesheets are NOT required for BMC summer internship funding.)

 

(b) Payment Schedule

Please consult your award letter for details about the payment schedule. Generally, payments are issued in 5 bi-weekly payments over the summer.

If you have significant up-front costs (such as international airfare or rental deposit), please contact the director of your funding program to inquire about arranging a lump-sum payment. In some cases, lump-sum payments may be authorized.

(c) Tax Treatment of INTERNSHIP FUNDING AWARDS

Salary payment for your summer funding is subject to applicable federal, state, and local income taxes and FICA. For most students this will amount to about 15-16 percent percent of the stipend.

 

(2) FELLOWSHIPS:

(a)  Required Paperwork

The most efficient way for you to be paid is by direct deposit into your bank account. If you have ever been an employee of the college, you will be paid by direct deposit according to the information in your Payroll record. Be sure to update your record if you have had a bank change. If you have never been employed by the college, we encourage you to arrange to be paid by direct deposit by completing the Direct Deposit Form. If you prefer to be paid by check, you MUST provide us with the address where you would like to have your checks mailed.

To set up direct deposit OR to if you have had a bank change, complete a Direct Deposit Authorization form and submit to Mary Ellen Gardner, Accounts Payable Coordinator, Controller's Office, mgardner@brynmawr.edu / phone (610) 526-5258 / fax (610) 526-7870.

(b)  Payment Schedule

In most cases of Fellowship awards, you will receive your summer funding in a total of 3 payments. 2 equal payments and a final payment upon receipt of your Final Report.

(c)  Tax Treatment of FELLOWSHIP AWARDS:

United States Citizens and Resident Aliens

Fellowships are federal taxable income to students except fellowships that directly pay tuition and fees, books, supplies and equipment, if required of all students in the course. The College is not required to deduct taxes from fellowships. At year end, fellowships are not reported on any tax form but the amount paid is listed on a letter sent to students. For more information refer to IRS Publication 970, Tax Benefits for Education on the IRS web site @ www.irs.gov.

Non-Resident Aliens

Fellowships are federal taxable income to students. At year end, fellowships are reported on Tax Form 1042-S. Taxes withheld will be charged to the student’s account and will not be deducted from fellowship payments. The withholding rate is 14% on a fellowship paid to a nonresident alien temporarily present in the United States in "F," "J," "M," or "Q" nonimmigrant status. A fellowship payment made to a nonresident alien individual in any other immigration status is subject to 30% withholding. However, a fellowship paid by a U.S. grantor to a nonresident alien who performs his study, research, or training outside the United States is considered to be a foreign-source grant, and is therefore not reportable to the IRS and is not subject to withholding.