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.
(1) Internship Funding Awards
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 and provide this information to HR prior to leaving campus. Please consult your Award Letter for more instructions. Timesheets are not requirement for summer internship funding.
Additional required paperwork for the Career & Civic Engagement Center funding program:
- Summer Funding Award Letter and Release
- Summer Funding Confirmation
- Organization Verification Form
Please consult your award letter for details about the summer payment schedule. A final payment is withheld and issued upon receipt of your final reporting materials.
Tax Treatment of Internship Funding Awards
Salary payment for your summer funding is subject to applicable federal, state, and local income taxes and FICA. Taxes are withheld from payments generally at the rate of 15-20%, and could be more or less depending on the filing of one's taxes, as well as one's international student status.
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 [pdf]. 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 if you have had a bank change, complete a Direct Deposit Authorization form and submit to Accounts Payable, Controller's Office (3rd floor Cartref).
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.
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 at www.irs.gov.
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.
Students with F-1 Visas must consult the International Student and Scholar Services and Advising for advising in order to receive College Summer Funding.