FAQ

Are fellowships subject to FICA?

Fellowship amounts are subject to FICA only if they are deemed to be “wages” for employment tax purposes. Whether fellowships are wages is an inherently
factual determination, requiring consideration of all relevant facts and circumstances of the program.

What is a fellowship?

A fellowship is any amount paid or allowed to, or for the benefit of, an individual to aid such individual in the pursuit of study or research. A fellowship may take
the form of: (i) payment(s) to the recipient, such as stipend payments; (ii) reimbursement or payment of expenses, such as travel expenses, to or on behalf
of an individual; or (iii) a credit against an existing term bill or a reduction in the amount owed by the recipient to an educational organization in connection with
the pursuit of study or research.

Why don't we accept foreign items that are less than $250?

Bank of America does not accept checks drawn on foreign banks in US dollars (USD) for amounts less than $250 USD. Checks drawn on a foreign bank are costly to process due to the fact that both Bank of America (BOA) and the foreign bank charge fees that may exceed the value of the check. Since local units are assessed these fees they should instruct their foreign customers to have their checks drawn on US bank in USD to avoid processing fees or drawn on a foreign bank in foreign currency.