The Role of the Department for Honoraria

Being proactive saves time!

Resources

Below are resources that help in preparing honoraria payments to foreign national visitors.

REQUIRED DOCUMENTATION TO PROCESS AN HONORARIUM
HONORARIUM COMPLIANCE STATEMENT

• At the beginning of the academic year or semester, get a copy of your department’s list of guest speakers from your chair, director, or the person organizing your colloquium /lecture/workshop series.
• Identify the foreign national guest speakers in advance of their arrival.
• Work with your faculty to determine the type of visa the guest speaker will have. This is key in determining exactly what paperwork will be necessary to collect.
• To ensure both university tax compliance and the foreign national’s adherence to their visa status, the department must first contact Tax Compliance at [email protected] to request a tax assessment through Sprintax Calculus. Include the foreign national’s name and email address in the tax compliance email. This assessment is mandatory for determining the foreign national’s residency status and tax liability prior to offering an honorarium; the system will guide the visitor to upload necessary immigration documents.
• Following the tax assessment, the department must verify if the foreign national has a Supplier ID number to process the payments in PeopleSoft, and if not, send them a PaymentWorks invitation to register. Completing both the tax assessment and the supplier registration beforehand is critical, as it ensures there will be no processing delays when the final voucher is submitted for payment.
• Honoraria payments to foreign nationals are subject to federal tax withholding at a standard rate of 30%, which can only be reduced or eliminated if the individual claims an applicable tax treaty.
• For honoraria payments exceeding $1,500 a 4% state tax (NC) will be withheld as well.