Process Honorarium Payment

A traditional honorarium is a one-time payment that is a token of appreciation paid to an individual who is not a Mason employee or student for a special and non-recurring activity or event for which no payment is required. Honoraria are typically paid to persons of distinguished scholarly or professional standing with the intent of showing appreciation for participation in University education, research or public service activities. There is no contract, the fee is not set or negotiated by the recipient, and the honorarium may not be paid to a third party.

An honorarium may include consideration for travel expenses that are not reimbursed with a Travel Reimbursement Voucher.

Examples include:

• A guest lecturer distinguished in their field
• A noted scholar participating in a symposium
• A minister or cleric providing an invocation
• A distinguished alumnus invited to make brief remarks at the dedication of a new campus building

An operational honorarium payment is a payment that is a token of appreciation paid to an individual who is not a Mason employee for an activity that supports Mason operations for which no payment is required. Honoraria are typically paid to individuals with the intent of showing appreciation for participation in University education, research or public service activities. There is no contract, the fee is not set or negotiated by the recipient, and the honorarium may not be paid to a third party.

Examples include:

• • A volunteer judge for the Patriot Games
  • A volunteer swim official for a community swim event
  • A cooperating teacher for a College of Education and Human Development program

First, prepare the following documents:

• Honorarium Payment Request
• Substitute W-9 Form
• Employee/Independent Contractor Evaluation Form
• Justification Letter (if required)
• Letter of invitation stipulating the dates and the purpose of the activity.

If the payment is $2,000 or more:

1. Process the request in eVA and attach the Honorarium Payment Request to the eVA order.
2. Once the purchase requisition in eVA has been approved and an EP number has been assigned, it is the department’s responsibility to forward the invoice to Accounts Payable at acctpay@gmu.edu and reference the EP number.

If the payment is less than $2,000:

1. Send all required documents to Accounts Payable in Fiscal Services at apforms@gmu.edu and retain the original documents.
2. U.S. Citizens and Permanent Residents will receive an IRS Form 1099MISC if required.

Use the Determination of the Tax Status table to determine the documents required from the visitor.

Determine the appropriate tax treatment on honorarium payments for nonimmigrants

Prepare the required payment forms:

• Completed Honorarium Payment Request
• IRS Form W-8 BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. (review W-8 BEN Instructions).
• Employee/Independent Contractor Evaluation Form
• Letter of invitation that stipulates dates and purpose of visit.
• Justification letter (may be requested)

If the payment is $2,000 or more:

1. Process the request in eVA and attach the Honorarium Payment Request to the eVA order.
2. Send the completed request with all required documents to the International Tax Office at 4400 University Hall, MS 4B2 for review and appropriate tax calculation.
3. After processing the request, the International Tax Coordinator will forward onto Accounts Payable for payment.

If the payment is less than $2,000:

1. Send all required documents to the International Tax Office in Fiscal Services at 4400 University Hall, MS 4B2 for review and appropriate tax calculation.
2. The International Tax Office will forward the documents to Accounts Payable.
3. NOTE: International Tax Office reserves the right to request additional documents if the information contained in the documents mentioned above does not provide sufficient information to determine Mason’s tax withholding responsibilities.

The International Tax Coordinator will determine the tax status, the amount of tax, and eligibility for tax treaty benefits according to the information provided by the department and honorarium recipient.

After processing the request, the International Tax Coordinator will forward it to Accounts Payable for payment. The following documents will be sent:

• Completed Honorarium Payment Request.
• Independent Contractor Evaluation Form.
• Letter of invitation.
• Copy of W-8BEN, W-9, or 8233(tax treaty benefit form) as appropriate.
• Certification of Eligibility form (if required).
• At the end of the calendar year, non-immigrants will receive an IRS Form 1099MISC or an IRS Form 1042S.
• Thirty percent (30%) tax may be withheld from all payments to non-U.S. citizens unless the individual is eligible to claim a tax treaty exemption.
• Non-immigrants must report all honorarium payments to the Internal Revenue Service (IRS).

Determination of the Tax Status