This message is to notify graduate programs of a recent change to how UBC withholds income tax for some student and postdoctoral fellowship appointments.

Specifically, effective 31 May 2017 onward, UBC will no longer automatically withhold income tax for appointments with the “FEL” (fellowships) earnings code. Those affected will continue to have their fellowship income reported via a T4A form each spring.

This change was prompted by a review of current UBC practice and the resulting conclusion that this change is necessary to bring UBC into compliance with Canada Revenue Agency tax policy.

This change will affect the following groups:

• Students with an NSERC USRA (Undergraduate Student Research Award) appointment
• Students with a Graduate Research Assistant (GRA) appointment
• Students with a Graduate or Undergraduate Teaching Assistant (GTA or UTA) appointment – 20% of GTA earnings are coded as fellowship earnings and tax will no longer be withheld against those earnings; tax will continue to be withheld against the remaining 80% (coded as regular earnings)
• Postdoctoral fellows supported by a competitive (award) fellowship (as opposed to a postdoctoral fellowship paid from a supervisor’s grant)

Though income tax will no longer be automatically withheld from fellowship earnings, students and postdoctoral fellows may request that tax be withheld by submitting a TD1 form (and a TD1BC form, if applicable) to UBC Payroll. The forms are to be submitted as original, hard-copy documents to the Payroll office (5th Floor- TEF3, 6190 Agronomy Road, Vancouver, BC V6T 1Z3).

Should you have further questions, please visit: https://www.grad.ubc.ca/scholarships-awards-funding/research-teaching-assistantships for details. All students and postdoctoral fellows with a current FEL appointment will also receive a direct email advising them of the changes outlined above.