Payment of Honoraria

Honoraria for US Citizens

An honorarium payment is a payment made as an expression of thanks or recognition for engaging in a University sponsored activity. Common examples are:

• Guest lecturers, speakers or panelists participating in a campus symposium.
• Awards to an individual for a special achievement or renown for participation in a short term activity or event that is of an educational, research, or public service nature and no-specific deliverable or specific result is requested or expected.

Honorariums are typically being paid to parties external to the University (i.e. those who are not University employees or students). Under rare circumstances a student may be eligible for an honorarium, however this exception must be approved by the VP for Procurement Services. This payment type is considered taxable income and is reportable to the Internal Revenue Service (if the sum of annual payment(s) to the person is $600 or more annually for domestic individuals and all amounts for foreign individuals) and may require withholding.

Payments Not Qualifying for Honorarium

• No honorarium payments may be made to a current employee, permanent, part-time, full-time or temporary.
• An honorarium may not be based on a negotiated amount between the individual providing services and the individual seeking services.
• Any verbal or written negotiated agreement in which the university will be obligated to pay for services is a contractual arrangement and must be made in accordance with procurement regulations.
• Honorarium payments may not be used for independent contractors or consultants.
• Honoraria may not be paid to Suppliers of Goods and Service who have an active business relationship with the University.

In accordance with the Taxpayer Identification Number Form (W-9) Requirement policy, U.S. payees that are interacting with the University must provide a completed and signed form W-9.

Completion of the w-9 forms is the responsibility of the payee. This includes accuracy of the payee name, address, and appropriate and IRS acceptable form of signature.  Vendor Management will verify this form for accuracy and compliance to IRS rules and regulations.

Once the recipient’s vendor profile has been approved by Vendor Management in Procurement, follow the instructions on the Finance Office website for completing a Check Request Form. Include the payee’s name and home address. In the space labeled Description of Services, provide all available details for the honorarium payment.  The Check Request Form must be accompanied by documentation (e.g. memo, flyer) describing the event and reason for payment.

An honorarium is taxable income that is reported to the IRS on Form 1099 if the sum of annual payment(s) to the vendor is $600 or more annually. However, expenses reimbursed to an honorarium recipient are not considered taxable income.

A payment is not treated as honorarium if the payment is for specified services rendered by an independent consultant or employee. Payments to University staff or Faculty members must be processed through the Human Resources Processing Center (HRPC) as additional compensation.

Please note: Under IRS regulations, honoraria payments are considered taxable income. Therefore, as a matter of policy, the recipient of an honorarium payment may not transfer the payment to another organization or individual. If the honorarium recipient wishes to transfer the payment to another organization or individual, he or she must receive the money and then donate it. The only exception to this rule is employees of certain Federal Government Agencies.

Foreign Individuals who traveled to the United States

In accordance with the Payments to Foreign Nationals and Entities Policy, Nonresident aliens doing business with the University are required to provide a completed and signed Form W-8* along with evidence of immigration status.

*For those who wish to have tax withholding waived because of a tax treaty between the US and the individual’s country of naturalization, the IRS form 8233, along with subsequent documentation, must also be provided.

Completion of the w-8 forms is the responsibility of the vendor.  This includes accuracy of the payee name, address, and appropriate IRS compliant signature.  Vendor Management will verify this form for accuracy and compliance

The following documents will be required for submission during the registration process with Vendor Management, from the individual depending upon the individual’s country of residence, as this will be required before payment is issued:

• Passport and one of the following:
  • Passport page reflecting Homeland Security
  • ESTA
  • Copy of I-94 Departure Card (official documentation of immigration status)
  • Visa

Depending on the type of payment, all payments made to or on behalf of a nonresident alien or foreign entity are generally subject to income tax withholding unless specifically exempted, either by U.S. tax law or an income tax treaty. Generally, payments not exempt from withholding, are subject to 30% federal income tax withholding, in accordance with Internal Revenue Service (IRS) regulations. To claim an exemption from tax withholding under an income tax treaty, the payee must submit the appropriate exemption request form, 8233, along with IRS compliant subsequent supporting documents.

Prior to agreeing to pay an honorarium payment to a non-resident alien, you must confirm that the individual is present in the United States under an immigration status that allows him or her to perform an activity for which a payment may be made. Foreign individual visitors (including visa exempt Canadian citizens who enter with only a passport and who have declared their reason for visiting the U.S. is business or Mexican citizens with Border Crossing Cards) that meet certain criteria may receive honoraria payments, even though they are not otherwise authorized to work in the United States and are not eligible for a social security number (SSN). Prior to agreeing to pay an honorarium payment to a non-resident alien, the individual will be verified as not subject to U.S, economic or trade sanctions under the Office of Foreign Assets Control (OFAC). A listing of sanction programs can be found on the OFAC website.

The four criteria that must be met for foreign individual visitors on a B-Visa are:

• “usual academic services” (typically lectures);
• for periods up to nine days at a time during any six month period;
• for no more than five institutions per six month period; and
• for higher education or nonprofit/government research institutions.

The University maintains a chart that demonstrates the type of payment that is intended to be made and the non-immigrant status, indicating whether a payment may be made. The chart can be found here.

Per U.S. Department of State regulations, a J-1 professor, research scholar or short term scholar not sponsored by Columbia University Program number P-1-00381 must provide a statement from their J-1 Sponsor (either the Responsible Officer or an Alternate Responsible Officer may sign) granting permission for them to receive payments from Columbia University.

Honoraria for Foreign Individuals who did not travel to the United States

In accordance with the Payments to Foreign Nationals and Entities Policy, Nonresident aliens interacting with the University are required to provide a completed and signed Form W-8.

Completion of the w-8 forms is the responsibility of the vendor.  This includes accuracy of the payee name, address, and appropriate signature.  Vendor Management will verify this form for accuracy and compliance.

Please note: Under IRS regulations, honoraria payments are considered taxable income. Therefore, as a matter of policy, the recipient of an honorarium payment may not transfer the payment to another organization or individual. If the honorarium recipient wishes to transfer the payment to another organization or individual, he or she must receive the money and then donate it. The only exception to this rule is employees of certain Federal Government Agencies.