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
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
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:
- UB may be subject to fines and penalties by the IRS.
- Federal guidelines regarding tax treaties are not currently
followed under the current procedure.
- U. S. taxes are not withheld from non-resident aliens who may
be liable for payment.
- Non-resident aliens incorrectly receive an IRS 1099 form at the
end of the calendar year. (The correct form is a 1042S).
- Since September 11, 2001, immigration rules and regulations are
being strictly enforced.
International Employment Unit
120 Crofts Hall
Buffalo, NY 14260