Honorarium Policy

I. Policy Purpose

The purpose of this policy is to define the circumstances under which honoraria may be paid.

II. To Whom the Policy Applies

This policy applies to all honorarium payments.

III. Policy Statement

Honorarium

For purposes of this policy, an honorarium is a one-time, discretionary payment made by the University as a gesture of goodwill or appreciation for an individual’s voluntary contribution to a University-sponsored activity. Example activities for which an honorarium may be paid include the following:

• A special one-time lecture for which the individual has no responsibility for grading or taking class attendance
• One-time guest speaker for an educational event, seminar, workshop, or other similar function
• Appearance at an event by a recognized authority in a particular field of endeavor

To qualify as an honorarium, there should be no specific deliverable requested or expected from the individual.

Honoraria may not be paid to:

• a current employee of the University (whether that employee is permanent, temporary, part-time, or full-time)
• a current University student
• a business

The University does not make charitable contributions to organizations in lieu of an honorarium payment.

An honorarium is a token of appreciation and not a contractual arrangement to pay for services rendered. Accordingly, it cannot be:

• based on a negotiated amount between the individual providing services and the University. Any verbal or written negotiated agreement in which the University will be obligated to pay for services must be made in accordance with University procurement policies and procedures (i.e., Independent Contractors or consultants).
• provided to individuals who make significant instructional contributions to a course.
• paid over several months or as a reoccurring payment (e.g., to visiting scholars).
• for an amount exceeding $5,000. Honorarium payments exceeding $5,000 must have written advance approval from the President, Provost, Dean, EVP for Finance and Administration/CFO, URMC CEO or CFO.

Eligibility & Visa Requirements

Honoraria may be paid to foreign nationals in accordance with their visa classification.

• Prohibited Visa Categories:
  • H‑1B, TN, O visas: Visitors on these visas not sponsored by the University may NOT receive honoraria or service payments. In such cases, payment may need to be arranged through the visitor’s home institution.
• J‑1 Visa Holders:
  • If the visitor is on a J‑1 visa not sponsored by the University, they must provide written authorization from their J‑1 program sponsor granting permission to receive payment. The authorization must be submitted with the payment request.
  • Sample authorization from J-1 visa holder’s sponsoring institution, on their letterhead:(Payee) has permission to receive payment from the University of Rochester. The activity they will be involved with at the University of Rochester is directly related to their principal activity, is indeed incidental, and will not delay completion of their program.

• B‑1/B‑2 or Visa Waiver Program (WB/WT):
  • Eligible for honoraria under the 9/5/6 rule:
    1. Stay no more than 9 days at the host institution,
    2. No more than 5 honoraria payments from U.S. sources in the previous 6 months.
  • A completed B-1/B-2 or Visa Waiver WB/WT Visa Holder Payment Certification Form must be submitted with the payment request.

Tax Withholding & Reporting

U.S. Citizens, Permanent Residents, and Resident Aliens for Tax Purposes

An honorarium is considered taxable income and is reportable to the IRS on Form 1099-NEC if the total reportable payments to the honoraria recipient meets the IRS reporting threshold. U.S. citizens, permanent residents, and resident aliens for tax purposes who receive honoraria payments from the University must provide a complete and signed Form W-9.

Non-Permanent Residents and Non-resident Aliens for Tax Purposes

All honoraria payments made to a non-permanent resident or foreign individual are subject to income tax withholding, unless specifically exempted by either U.S. tax law or an income tax treaty. Payments not exempt from withholding are generally subject to 30% federal income tax withholding in accordance with IRS regulations. To claim an exemption from tax withholding under an income tax treaty, the payee must submit Form 8233 along with any required supporting documents to Candex.

Prior to agreeing to pay an honorarium payment to a non-permanent resident, the payment requester must confirm that the individual is present in the United States under an immigration status that allows them to perform an activity for which a payment may be made, as described above under “Eligibility & Visa Requirements.”

Travel Reimbursements Paid to an Honorarium Recipient

Travel reimbursements paid to an honorarium recipient are non-taxable when documented and paid in accordance with the University’s Business Expenses and Travel Reimbursement Policy.

Documentation & Process

See Honorarium Process Guide for detailed information regarding documentation requirements and procedure information.

• All Honoraria payments are paid through Candex.
• Supporting documentation to be submitted with the Honorarium request includes:
  • Event Flyer, Event agenda, or other materials that describe the event and the recipient’s participation in the University event.
  • If the payee is a visa holder, the appropriate visa authorization, as described in the Visa Requirements section, must be attached.