Policy: VII.R.13x (inactive)
Issued: January 24, 1994
Owner: Assistant VP for Finance and University Comptroller
This policy describes the how honoraria should be set and dispersed to individuals who performed a service where payment is not required.
2.0 Policy [Top]
An honorarium is a token of appreciation paid to an individual for services performed for which payment is not required. The services involved vary, but are generally associated with oral presentations made at University sponsored functions. The arrangement between the individual and the University is informal. It does not involve a contract, and invoicing is not required.
Honoraria seldom exceed $2,000. In the rare instance where an HONORARIUM IS TO EXCEED $2,000, PRIOR APPROVAL BY THE DEAN or VICE PRESIDENT IS REQUIRED.
UNIVERSITY FACULTY AND STAFF CANNOT RECEIVE HONORARIA FROM THE UNIVERSITY, EXCEPT THROUGH THE WAGE PAYROLL SYSTEM.
The honoraria amount may not be set by the recipient. The department should process the transaction as a demand payment.
If the arrangement includes reimbursement for travel expenses, these expenses may be included on the same COMBO form requesting honoraria payment, and are subject to State and University limits.
2.2 Foreign National Independent Contractors, Honoraria, and Royalty Recipients
Resident Aliens ("Green" Card and Substantial Presence Test Resident Aliens) are handled in the same manner as U.S. citizens. No withholdings will be performed, and earnings will be reported on Form 1099.
Nonresident alien payments for contractual services, honoraria, and royalties must have taxes withheld at a rate of 30%. Nonresident alien independent contractors, honoraria and royalties recipients may be entitled to receive treaty benefits if they are from one of the following countries:
Australia, Austria, Barbados, Belgium, Canada, China, Commonwealth of Independent States (includes Armenia, Azerbaijan, Belarus, Kazakhstan, Krygyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan), Cyprus, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Italy, Jamaica, Japan, Republic of Korea, Luxembourg, Malta, Morocco, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Romania, Spain, Sweden, Switzerland, Trinidad and Tobago, Tunisia, and the United Kingdom.
- Policy IV.G.2, "Taxation Instructions for Foreign National Recipients of Scholarships/Fellowships."
- HRS Policy on Paying Foreign National Individuals
NOTE: Honoraria payments to foreign national individuals may be limited by their type of visa.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]