Federal and State Tax Withholding
The following chart illustrates the various federal and state tax withholding rates based on the type of payment and particular tax circumstances of the payment.
| Type of Income | Federal Taxes | State Taxes | Year End Statement(s) |
| Employment: Subject to a Tax Treaty | 0 | Based on the state graduated income tax rates subject to the allowances indicated on GLACIER generated W-4 | Form W-2 for state tax information and Form 1042-S for federal tax information |
| Employment: Employee is a tax resident of Canada, Korea, Mexico | Based on the IRS graduated income tax rates and subject to the allowances indicated on GLACIER generated W-4 and a restricted marital status of single | Based on the state graduated income tax rates subject to the allowances indicated on GLACIER generated W-4 | Form W-2 for state and federal tax information |
| Employment: Employee is a nonresident who works and lives outside of the United States | 0 | 0 | No reporting required |
| Employment: All Others | Based on the IRS graduated income tax rates and subject to a restricted marital status of single with 1 allowance | Based on the state graduated income tax rates subject to the allowances indicated on GLACIER generated W-4 | Form W-2 for state and federal tax information |
| Fellowship/Scholarship: F1, J1, M1, Q1 | 14% | UCLA is not required to withhold | Form 1042-S for Federal reporting only |
| Fellowship/Scholarship: Other Visas | 30% | UCLA is not required to withhold | Form 1042-S for Federal reporting only |
| Fellowship/Scholarship: On Tax Treaty | 0 | UCLA is not required to withhold | Form 1042-S for Federal reporting only |
| Independent Personal Services | 30% | 7% of gross greater than $1500 if California nonresident | 592 if CA nonresident Form 1042-S for federal reporting |
| Independent Personal Services - Tax Treaty | 0 | 7% of gross greater than $1500 if California nonresident | 592 if CA nonresident Form 1042-S for federal reporting |
| Travel Reimbursement | Not subject to income tax withholding as long as the Accountable Plan Rules are met. Otherwise, the rate is 30% | Not subject to income tax withholding as long as the Accountable Plan Rules are met. Otherwise, the rate is 7% of gross greater than $1500 for California nonresident | No current requirement as long as the Accountable Plan Rules are met. Otherwise: 592 if CA nonresident Form 1042-S for federal reporting |
| All Other Payments | 30% | 7% of gross greater than $1500 if California nonresident | 592 if CA nonresident Form 1042-S for federal reporting |
Employment Tax
Employment Tax also known as Social Security tax is only withheld on employment type payments. The current withholding rates for employment tax are:
- 6.2% for OASDI
- 1.45% for Medicare
Generally, all nonresident employees are subject to employment tax. However, Internal Revenue Code provides an exemption from withholding of employment tax on payments to nonresident aliens who entered the United States on F-1 or J-1 visas. See Tax Rules and Regulations for further information.
