Date Established: 3/5/2004
Date Last Revised: –
Vice President for Finance and Administration
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This policy is in effect even though it has not gone through the policy review process.
The University at Buffalo recognizes the need to process honoraria payments for citizens, resident aliens, and non-resident aliens. This policy defines the appropriate process for honoraria payments.
Payment of honoraria for non-resident aliens will be made through the state payroll system. This is the only mechanism that will allow us to tax individuals properly and to apply treaty exemptions to eligible non-resident aliens. All state travel reimbursements for honoraria recipients will be processed in Travel Services. Accounts Payable will process all other honoraria claims through the state voucher system utilizing temporary service funding.
According to the guidelines from the Office of the State Comptroller (OSC), the proper object code for honoraria payments is 2800. Therefore all honoraria payments will be processed using this code from temporary service monies.
OSC guidelines further indicate that a justification is required when processing honoraria payments for over $500 per day. For that reason, it is important to accurately indicate the dates of service. When payments calculate to over $500 per day, excluding travel reimbursement, a short justification is required to substantiate the expenses. This can be done directly on the honoraria form either under Section IV Description of Services Performed or Section V Dates of Service.
For several years, the University at Buffalo (UB, university) has processed honoraria payments for citizens, resident aliens, and non-resident aliens through Procurement Services when state funds are used. Honoraria payments to non-resident aliens have come under close scrutiny by the IRS. Therefore, the need to implement a change in the method of payment to non-resident aliens has become a priority.
It was necessary to review the current payment process for non-resident aliens because: