IMPORTANT: Do not make a commitment regarding an honorarium to a foreign national before consulting with the Office of International Programs (OIP). Your department must understand important visa and taxation issues before committing to an honorarium.

The process of paying a foreign national an honorarium and/or travel reimbursement is complicated and involves multiple offices. The university’s ability to pay an honorarium or travel reimbursement to a foreign national is dependent on several important factors, including, but not limited to:

  • The visitor’s visa status
  • Tax treaty benefit eligibility of the visitor
  • Document collection and verification

Please contact the OIP for details about how this will apply to your visitor well in advance of making any promises about honorariums or travel reimbursements. Please provide OIP with the proposed visitor’s:

  • Name,
  • Email address
  • Country of citizenship
  • Proposed visit date(s) and activities
  • Honorarium and/or travel reimbursement amounts

The OIP will assist you with the payment process.

The following sections of this page contain details about paying an honorarium or travel reimbursement to a foreign national for academic activity in the U.S. This information is for reference purposes, you do not need to read all of this information before contacting the OIP.

Honorarium Information

An honorarium is a payment to an individual for a presentation-oriented, guest lecture or invitational event. Before committing to an honorarium for a foreign national, departments must ensure the person has the appropriate visa that allows such a payment. For short-term visits made for the purpose of delivering a lecture or speech, only certain visa classifications are authorized to accept an honorarium. An individual already in the U.S. may not necessarily be here in the correct visa classification.

An honorarium may be paid to a foreign national for "usual academic activity or activities." These activities include lecturing, teaching and sharing of knowledge. Free performances may also qualify.

An honorarium paid to a foreign national is subject to 30% withholding, unless the person can claim a tax treaty benefit. This withholding also applies to a nonresident alien entity. This means that University of Puget Sound is required by the IRS to withhold 30% from any honorarium disbursement made to a foreign national unless the payee can claim a tax treaty benefit. Travel reimbursement is not subject to withholding because it is generally not considered income.

Ultimately, it is up to each individual visitor to understand their visa status and determine if they are able to accept payments while in that visa status. We will offer guidance but we cannot offer legal advice on visa matters to visitors. Below is a brief summary of the most common visa statuses we encounter to help you better understand the situation your visitor may be in:

  • B-1 or B-2 provided the individual meets the conditions of the Honorarium Rule.
  • VWB (Visa Waiver Business) or VWT (Visa Waiver Tourist) provided the individual meets the conditions of the Honorarium Rule. 
  • J-1 scholars sponsored by University of Puget Sound
  • J-1 scholars sponsored by another university may be invited to give a lecture or participate in academic activity on an occasional basis. The scholar must obtain written authorization for the activity from the sponsoring university's Responsible Officer in advance of the activity. The written authorization must be included with the paperwork that is forwarded to Accounts Payable.
  • H1-B, E3, TN and O-1 visa holders sponsored by the University of Puget Sound. (H-1B, E3, and O-1 visa holders at another university may only receive reimbursement for travel and/or incidental expenses, not an honorarium for academic activity at Puget Sound.)

Foreign nationals in B-1, B-2, VWB, and VWT status may accept an honorarium and/or reimbursement of travel expenses under the following conditions:

  • For "usual academic activity or activities"
  • 9 days or less at University of Puget Sound
  • The individual has accepted such payment from no more than 5 educational or research institutions (including Puget Sound)
  • In the previous 6-month period.
Honorarium and Travel Reimbursement Payment Process

Be prepared to provide the following:

  • Visitor/Speaker Name:
  • Visitor Email:
  • Country of Citizenship:
  • Country of Residence (if known):
  • Current/proposed visa status (Optional - include if you any have info. regarding current visa status, for example ‘on a J-1 visa at X Univ.’ or, how they plan to enter the US, for example ‘from a visa waiver country’ or ‘plans to apply for a B visa’):
  • Title(s) of Activity at Puget Sound:
  • Date(s) of Activity at Puget Sound:
  • Honorarium Amount (Please note: the IRS requires the University to withhold 30% tax on all honorarium payments to foreign nationals unless the individual qualifies for an exemption.):
  • Travel Reimbursement Amount (or list items to be reimbursed):
  • Host Department:
  • Department contact Name(s), Email(s) and Phone(s) (include all individuals that should be copied on correspondence with or about the visitor):

We must collect this form from the visitor to solicit the information needed to process payment(s). In the case of an honorarium payment this form is also used to determine that the payment meets the “Honorarium 9/5/6 rule”. This form also helps us better understand if the visitor may be eligible for a tax treaty benefit allowing us to waive the 30% tax withholding. The OIP can send this form, along with an explanation of the honorarium payment process and rules, to your visitor if you prefer.

A letter of invitation or contract should be sent to every foreign national invited to the University of Puget Sound who will receive payment for services or travel expenses. The inviting department should request a formal letter of invitation for the visitor from the appropriate University official, usually the Provost. Be sure to submit a copy of the letter to OIP. The letter should contain the following information:

  • Detailed description of the event or activity
  • Date of the event
  • The amount of any payment that will be made with a note about tax withholding
  • Whether travel and/or incidental expenses will be reimbursed
  • Contact information at the sponsoring department for further information

during the visitor’s first day(s) on campus (or ensure you have another plan in place) to complete the following:

  • Collect a scan of the arrival stamp in the visitor’s passport or to download their I-94 record
  • Discuss and/or complete the appropriate tax form

Honorarium and Travel Reimbursement Payment Documentation Requirements

Finance will use the documents below to process the disbursement or wire transfer request(s).

Honorariums:

Department will submit the following to finance:

  • Disbursement Request or Wire Transfer Request

OIP will collect, and submit to finance, the following:

  • Completed Foreign National Payee Statement (to be submitted by visitor in advance of arrival)
  • A copy of the invitation letter clearly specifying the date and location of the activity/activities for which the honorarium is being paid (to be provided by department or Provost office)
  • Scan of the ID page of the passport (to be submitted by visitor in advance of arrival)
  • Scan of the arrival stamp in the passport OR print-out of I-94 card from CBP website (must be collected once the visitor is in the US)
  • Scan of the visa if applicable (to be submitted by visitor in advance of arrival or collected upon arrival)
  • If on a J visa form another institution, a letter of permission for the activities at Puget Sound from the J sponsor institution (to be submitted by the visitor) and copy of the DS-2019
  • Completed tax form (Form 8233 if claiming a tax treaty; W-8BEN if not) (to be submitted by visitor in advance of arrival or collected upon arrival)

Travel reimbursements:

Department will submit the following to finance:

  • Disbursement Request or Wire Transfer Request
  • Receipts for the reimbursed items

OIP will collect, and submit to finance, the following:

  • Completed Foreign National Payee Statement (to be submitted by visitor in advance of arrival)
  • Scan of the ID page of the passport
  • Scan of the arrival stamp in the passport OR print-out of I-94 card from CBP website
  • Scan of the visa if applicable

Payment Options

The payment will be issued as a check drawn in U.S. dollars unless you request a wire transfer. Some visitors have had no problem depositing a check from the U.S. into their bank account in their home country, others have reported that they were not able to deposit a U.S. check. If there is time to have a check drawn while your visitor is still with us on campus, Finance can cash the check for the visitor, if they go in person to the Finance office. Some visitors have utilized this convenient option so they have U.S. cash while they are here and/or a simple way to bring the funds home.

If your visitor will already be gone when a check will be ready, you may want to request a wire transfer. Note however that the University incurs a $10 fee for every wire transfer and therefore the University prefers to issue payments via check.

If your visitor has requested a wire transfer be sure they have supplied the following information on the Foreign National Payee Statement:

  • Account #/International Bank Account Number (IBAN)
  • SWIFT Code
  • Bank Name
  • Beneficiary name (ensure this matches the account holder’s name on the international bank account so the home country bank does not reject the transfer)
  • Amount of payment
  • Currency of payment (we have the ability to send USD or a variety of currencies depending on what the individual foreign bank will accept)

Payment Timing

Checks are typically ready within five business days of the Disbursement Request submission. Since the payment request cannot be processed until we have collected the full list of required documentation (which includes a scan of the entry stamp in the visitor’s passport) a check may, or may not, be ready while your visitor is still in the US. Please plan accordingly.

If the visitor needs payment expedited (for example, the visitor has limited personal funds or mail and wire transfer to home country are difficult), please inform Finance in advance of the visitor’s arrival.

Wires can be sent on the same business day if paperwork is at Office of Finance by 1pm. 

Please note that if your visitor does chose to claim tax treaty benefit and submits Form 8233, please allow 10 days to process payment of honoraria (no exceptions). The IRS requires Finance to file 8233 and then wait 10 days before releasing payment.