Honoraria Payments
Honoraria Parameters
Honoraria payments cannot be paid to University employees. An Individual (not a corporation, business, or partnership) is eligible to receive honoraria for "usual academic activity", which is defined as academic activities including lecturing, teaching/sharing knowledge, performances, master classes, conducting research, attending meetings, readings, and board/committee meetings that benefit the University. These activities are mainly open to students free of charge and sometimes open to the general public free of charge.
Note: Under the Internal Revenue Service (IRS) regulations, honorarium payments are considered taxable income. Therefore, the University is required to report these payments to the IRS on Form 1099-MISC if the sum of annual payment(s) to the recipient is $2,000.00 or more during the tax year. A mandatory withholding will apply in the absence of U.S. tax identification numbers (up to 24%).
If travel expenses are paid, they must be paid directly to the hotel and airline/common carrier on behalf of the guest. All travel expenses provided by the University must be in accordance with the University Travel Policy.
Foreign visitors (nonresident aliens) eligible to receive honoraria:
- Visitors in the U.S. with B (B-1, B-2) or visa waiver (WB, WT, etc.) status
- Have not received honoraria from more than five educational institutions in the previous six-month period
- Cannot engage in the academic activity for more than nine days in duration.
- Must certify eligibility to receive honoraria
- The recipient of an honorarium may not transfer/assign the payment to another organization or individual.
Honorarium Determination
Key Considerations- Is the individual operating as a business entity (e.g., corporation or partnership)?
- Was the payment amount negotiated between the University and the individual?
- Is there a formal contractual agreement in place?
- Are the services provided on a recurring basis?
- Is the individual currently an employee or student employee of the University?
- Did the individual establish the price for the services?
Withholding
When paying an honorarium to a foreign national, a 30% withholding tax typically applies unless the individual can claim a tax treaty benefit that reduces or eliminates the withholding obligation. This rule also applies to nonresident alien entities, where applicable. However, travel reimbursements are typically not subject to withholding because they are generally not considered taxable income when they meet accountable plan requirements.
The University will report to the Internal Revenue Service on Form 1042-S all payments made to nonresident aliens that are subject to reporting.
Honorarium payment cannot be made for the following:- Recognition and extraordinary service payments (honoraria) made to University employees
- Must use appropriate payroll process: EPA employees – Internal Salary Authorization or SPA employees – Overtime Payment
- Independent contractor/consultant services
- Services of a professional speaker or consultant who performs the requested service for a living
- A fixed sum of money paid periodically for services or to defray expenses. Presenters expecting payment for services for participation in recurring events will not receive an honorarium.
The campus P-Card cannot be used to procure this service. Out-of-pocket payments made by University employees for this expenditure will not be reimbursed.
Revised: July 31, 2024
