Honorarium Information

School of Music Honorarium Guidelines

The State of Maryland Ethics Commission defines honorarium payments as the payment of money or anything of value for: 1) speaking to, participating in, or attending a meeting or other function; or 2) writing an article that has been or is intended to be published

An honorarium payment is provided as a token of appreciation for participation in an activity or event, and not as a contractual obligation to pay for services rendered. Honorariums are usually one-time payments made to an individual (not a corporation, business or partnership) who is not an employee of the University, for a special and non-recurring activity or event.

“Usual Academic Activity” means activity conducted for the benefit of the honorarium-paying Institution and includes lecturing, teaching, readings, and performances, conducting research, attending meetings, symposia or seminars, or otherwise sharing knowledge.

In General: An honorarium is an ex-gratia payment made to a person for their services in a volunteer capacity or for services where fees are not traditionally required. This method of payment is usually made to a guest speaker or lecturer as a gesture of good will and appreciation. An honorarium is not based on an agreed amount between the individual providing services and the individual seeking services. If payment is agreed upon or occurs routinely, this constitutes a contractual agreement.

The honorarium is not a binding contract. There is no legal obligation for the recipient to fulfill the request. If the individual cancels or fails to appear, there is no recourse or threat of recourse against the individual. The recipient is not an employee, does not have an existing consultant obligation to the University, and does not perform the service for a living.

Payment Amounts:

$200-300 as a modest gesture of appreciation for a class visit or a meeting with students
$500 for an academic speaker or performing artist who has notoriety in their field

Exception: In those cases where the guest faculty’s participation is more extensive than one or two one-hour presentations, a higher honorarium may be offered. Examples would include speakers who present a seminar or workshop lasting several hours, or a guest faculty who teaches skills courses. These will be decided on a case-by-case basis.

Allowable honoraria payments (all have a short duration period of service):

Payment to a guest speaker. A guest speaker is someone who possesses advance knowledge of a particular subject area and speaks about that subject area to a group or organization with which he or she is normally not involved.
Participation as a judge in a writing or photo contest.
Participation in a panel discussion.
A special lecture or short series of such lectures.
Appraisal of a manuscript or an article to be submitted to a professional publication.
Reviewing research findings prior to the final report being published.

An honorarium is not appropriate:

To pay a faculty, staff or student employee for their services.
To pay for services requiring an executed contract and/or a purchase order.
To replace or circumvent procedures for paying consultants.
To pay professional motivational speakers who perform such services as a career and charge a fee to participate in the event.
To pay for a recurring activity or service.
When the services require access to university proprietary information (such services are considered consulting).

See Below for Information on Making an Honorarium Payment to a Non-US Citizen

Non-Resident Alien (NRA) Documents Required

NRA Independent Contractor Payment Form	ORIGINAL. Completed by honorarium recipient (“Payee Information” & “Substantial Presence Test” & Signature) and department’s payroll representative (“Departmental Information”).
I-94	COPY. I-94 card with visa type or copy of passport with I-94 departure date stamp.
Visa/Passport	COPY. Must be valid (not expired) J-1 visa holders must also submit a copy of their DS-2019 and letter from the DSO on sponsor’s letterhead authorizing activity at UMD. *F1 students on OPT must have valid Employment Authorization Document
Taxpayers ID#	COPY. Social Security (SSN) Card or Individuals Taxpayers Identification Number (ITIN) Card, if available.
Agreement Letter	COPY. Must include name, address, SSN or ITIN, Amount of payment, and Date(s) of Service.
Certification of Academic Activity	ORIGINAL. (ONLY for B-1, B-2, W-B & W-T visa holders)
W8-BEN	ORIGINAL. Parts I and IV for all visa holders. Parts I, II, and IV if a tax treaty applies.
Form 8233	ORIGINAL. Completed by payee & department. Submit only if a tax treaty applies (List of tax treaty countries is included).
W-7 Form	COPY. Submit if visa holder has no Taxpayers ID#.
Affidavit of Compliance	ORIGINAL. Submit only if visa holder has no Taxpayers ID# and with W-7, as above.

Visa Classification Examples

B-1	Visitors for business. Does not authorize employment, but allows visitor to be paid honorariums and/or associated expense reimbursements.
B-2	Visitor who intends combine business and pleasure may be issued a B-1/B-2 visa. The visitor’s status will be designated as either B-1 or B-2 on the INS Form I-94 at the time of arrival.
WB	Waiver for Business. (Visa Waiver program established by the Immigration Reform and Control Act of 1986)*
WT	Waiver for Tourism. (Visa Waiver program established by the Immigration Reform and Control Act of 1986)*

*Individuals in Visa Waiver program are treated in accordance with the rules for B-1/B-2 visa holders. 90 days is the maximum admission period for WB and WT visa holders. Participating countries are: Andorra, Australia, Austria, Belgium, Brunei, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Taiwan*, United Kingdom.

* Unless citizens are also a national of Iraq, Iran, Syria, or Sudan.

Tax Exemption Section

INDEPENDENT CONTRACTOR - Countries Exempt from Federal Income Tax Withholding

The payees from countries listed below are exempt from Federal Income Tax withholding providing the payee complies with conditions listed. If a country is not listed, then any independent contractor, including artists or athletes or entertainers or sportsmen, who claim residence in that country will have 30% of the fee withheld for federal income taxes.

Countries with No Limits on the Amount of Compensation Paid

Australia, maximum stay 183 days, Art. 14; Bangladesh, maximum stay 182 days, Art.15, Belgium, maximum stay 182 days, Art. 14(2) (a) (b); Canada, no maximum stay, Art. XIV; China-People’s Republic, maximum stay 183 days, Art. 13; Cyprus, maximum stay 182 days, Art. 17; Czech Republic, maximum stay 183 days, Art. 14; Egypt, maximum stay 89 days, Art. 15; Finland, no maximum stay, Art. 14; France, maximum stay 182 days,

Art. 14; Germany, claim on tax return, Art. 7; Hungary, maximum stay 183 days, Art. 13; India, maximum stay 89 days, Art. 15; Indonesia, maximum stay 119 days, Art. 15; Israel, maximum stay 182 days, Art. 16; Italy, maximum stay 183 days, Art. 14; Kazakhstan, maximum stay 183 days, Art. 14; Mexico, maximum stay 183 days, Art. 14; Netherlands, no maximum stay, Art. 15; New Zealand, maximum stay 183 days, Art. 14; Newly Independent States, maximum stay 183 days, Art. VI (2); Norway, maximum stay 182 days, Art. 13; Poland, maximum stay 182 days, Art. 15; Portugal, maximum stay 182 days, Art. 15; Romania, maximum stay 182 days, Art. 14; Russian Federation, maximum stay 183 days, Art. 13; Slovak, maximum stay 183 days, Art. 14; Spain, no maximum stay, Art. 15; Sweden, no maximum stays, Art. 14; United Kingdom, maximum stay 183 days, Art. 14.

Countries with a $3,000 Limit on the Amount of Compensation Paid

Austria, maximum stay 183 days, Art. X; Denmark, maximum 90 stay days, Art. XI; Korea, maximum stay 182 days, Art. 18; Luxembourg, maximum stay 180 days, Art. XII; Trinidad & Tobago, maximum stay 183 days, Art. 17.

Countries with a $5,000 Limit on the Amount of Compensation Paid

Barbados, maximum stay 89 days, Art. 14; Jamaica, maximum stay 89 days, Art. 14, Morocco, maximum stay 182 days, Art. 14.

Country with a $7,500 Limit on the Amount of Compensation Paid

Tunisia, maximum stay 183 days, Art. 14. Country with a $10,000 Limit on the Amount of Compensation Paid Greece, maximum stay 183 days, Art. X; Philippines, maximum stay 89 days, Art. 14 Switzerland, maximum stay 183 days, Art X.

Updated 12/05/2016

INDEPENDENT CONTRACTORS Who Are Artists or Athletes or Entertainers or Sportsmen - Countries Exempt from Federal Income Tax Withholding

Countries with No Limits on the Amount of Compensation Paid

China, People’s Republic, no maximum stay, Art. 16; Egypt, maximum stay 89 days, Art. 15; Finland, no maximum stay, Art. 14; Germany, no maximum stay, Art. 14; Iceland, maximum stay 182 days; Art. 18, India, maximum stay 89 days; Art. 15; Indonesia, maximum stay 119 days, Art. 15; Israel, maximum stay 182 days, Art. 16; Italy, maximum stay 183 days, Art. 14; Mexico, maximum stay 183 days, Art. 14; Netherlands, no maximum stay, Art. 15; New Zealand, maximum stay 183 days, Art. 14; Norway, maximum stay 182 days, Art. 13; Portugal, maximum stay 182 days, Art. 15; Romania, maximum stay 182 days, Art. 14; Russian Federation, maximum stay 182 days, Art. 13, Slovak Republic, maximum stay 183 days, Art. 14; Spain, no maximum stay, Art. 15; Sweden, no maximum stay, Art. 14.

Countries with a $3,000 Limit on the Amount of Compensation Paid

Trinidad & Tobago, maximum stay 183 days, Art. 14.

Countries with a $4,000 Limit on the Amount of Compensation Paid

Barbados, no maximum stay, Art. 17.

Countries with a $5,000 Limit on the Amount of Compensation Paid

Jamaica, maximum stay 89 days, Art. 14; Morocco, maximum stay 182 days, Art. 14.

Countries with a $7,500 Limit on the Amount of Compensation Paid

Tunisia, maximum stay 183 days, Art. 14.

Countries with a $10,000 Limit on the Amount of Compensation Paid

Australia, maximum stay 183 days, Art. 17; France, maximum stay 182 days, Art.17: Philippines, maximum stay 89 days, Art. 15.

Countries with a $15,000 Limit on the Amount of Compensation Paid

Bulgaria, no maximum stay, Art. 16; Canada, maximum 182 days, Art. XVI.

Countries with a $20,000 Limit on the Amount of Compensation Paid

Czech Republic, maximum stay 183 days, Art. 18; Iceland, no maximum stay, Art. 16. Updated 07/01/2009