B Visitor Honorarium and
Reimbursement Payments

On 21 October 1998, President Clinton signed into law the American Competitiveness and Workforce Improvement Act (ACWIA).

All of us have struggled for years with the problem of international guest lecturers who come into the U.S. in visitor or tourist visa classification and make it impossible for us to pay the honoraria we had promised. AS LONG AS the visitor will be participating in the activity at South Alabama no longer than nine (9) days. Section 431 of the 1998 law permits educational and nonprofit research institutions to pay reimbursements for expenses and honoraria to international visitors engaged in academic activities. In addition, we can make these payments for both the B-1 and the B-2 visitors. Here is a short Q & A to give you the basics on how to use this law.

Q1.	Who is allowed to receive reimbursements and honorarium payments?
A1.	Anyone who, while in "B" visa classification, engaged in academic activities at an academic institution or nonprofit research institution. The academic activity can last no longer than nine days. Visitors are limited to six such reimbursements or honoraria payments in a six-month period.
Q2.	What is "B" visa classification? How do I recognize it?
A2.	"B" covers all of the following classifications: B-1; B-2; combined B-1/B-2; WB; WT; and combined WB/WT. One of those notations must appear on the Form I-94, Arrival/Departure Record, which is normally stapled into the passport.
Q3.	How is this different from what we were doing before?
A3.	Under the old law we could reimburse documented expenses only to those admitted in B-1 or WB, "visitor for business," status. We could not reimburse expenses for those in B-2 or WT, "visitor for pleasure" status. No one could be paid an honorarium. Under the new law, all of these kinds of visitors may receive both reimbursement for expenses and payment of honoraria. Again, this applies ONLY if the conditions outlined in Question #1 are present. If the conditions outlined in Question #1 are not met, please refer to Question #10.
Q4.	How do I document the B classification for South Alabama Payroll so that they can authorize reimbursement and honorarium payments?
A4.	Here is a checklist of things the department MUST do when international guest arrives at South Alabama.
	1.	Make a photocopy of: __ the identification page of the passport (If Canadian, see A5.) __ the expiration date page of the passport __ the Form I-94, both the front and back
	2.	If the visitors do not have U.S. Social Security Numbers, you will have to help them file for an Individual Taxpayer Identification Number (ITIN) at the local IRS office using Form W-7.

IMPORTANT NOTE: If the foreign national is ONLY BEING REIMBURSED for expenses and NO HONORARIUM IS BEING PAID, it is not necessary for him/her to have a U.S. Social Security Number or an ITIN.

Q5.	What about the Canadians? Sometimes they come in and have absolutely no documentation. They often don’t even carry passports.
A5.	It is true. Canadians are not required to carry passports and often the U.S. CIS officer at the border just "waves them through." In order to cross the border, they must carry some form of identification that confirms their Canadian citizenship. Canadians often carry a card version of their birth certificate. You are allowed to accept a document other than a passport that confirms Canadian citizenship. Regarding the I-94, under INS regulations, any Canadian citizen who is admitted without getting a Form I-94 is presumed to be in the U.S. in "B" status.
Q6.	Do I still need to request J-1 visas for any of my guest lecturers? Can I just forget about doing that now?
A6.	Those people who meet the criteria (see Q2 and Q4 above) do not need the J-1. The "B" visitor status is much easier for international scholars to obtain and you do not have to do the paperwork for the J-1. However, any activity that will be over nine days or any activity that puts the scholar over the six-in-six-months limit, does not qualify for reimbursement or honorarium payments. Those scholars still will need J-1 status. Also, in any situation where the department or the scholar prefers the J-1 status, the Enrollment Services Office will be pleased to provide those documents, as we have in the past.
Q7.	Is anything other than lectures covered? What about demonstrating techniques, master classes, collaborative research, attending a meeting, sitting on a dissertation committee?
A7.	The law uses the term "academic activities," and leaves it to the Citizenship and Immigration Service, in consultation with the Secretary of Education, to define the term "academic activities." In order to make this honorarium option available to the South Alabama community as quickly as possible, we are taking a conservative approach on the nature of the activity. Until U.S. CIS and Department of Education (DoEd) have defined the activities, we will assume that lectures and teaching are covered; other activities will be dealt with case-by-case.
Q8.	When can I start using this new procedure and how do I file with Payroll to get a check?
A8.	You can begin using the new procedure immediately. Any academic activity occurring on or after 21 October 1998 comes under the new law. Remember that if the activity does not include lecturing or teaching, we need to look at that case before the visitor leaves the home country to come to South Alabama.
Q9.	What do I need to look out for?
A9.	Here is where problems can occur.
	1.	This only works for the "B" visa classification. Someone coming from another university in another classification is not eligible. Diplomats, employees of foreign governments, military personnel or others on foreign government representative visas do not qualify. For example, employees of the World Bank or a political officer attached to foreign embassies in the U.S. hold visa classes specific to the duties of their posts. They are not permitted to earn additional income through activities such as speaking engagements. Similarly, those who hold H-1B or J-1 status at another school are not eligible for this kind of honorarium payment.
	2.	If we don’t get copies of the Form I-94, we have no evidence that they were in an eligible status.
	3.	If they don’t have social security numbers and the department does not help them file for ITINs at the IRS office, then South Alabama cannot pay them. Pay would have to be delayed until they could file for a number from the home country, a very long and painful process.
	4.	Nine days is the absolute visit limit, no exceptions. Any activity lasting longer than nine days does not qualify.
	5.	The academic butterflies flitting from school to school may exceed their limit of six schools in six months. If South Alabama is school number seven, the visit does not qualify and we cannot pay.
10Q.	If the "B Honorarium" rules do not work for me, what are the existing regulations elated to B-1/B-2 visa holders?
10A.	Foreign nationals entering in B-1/WB status may ONLY be reimbursed for expenses. No honorarium may be paid. Individuals in B-2/WT status CANNOT be reimbursed for expenses or paid honoraria.

For visa questions contact the Office of Enrollment Services – 460-6494

Payments?
Quick formula - plug in visa class and payment type, then read across:

B-1/WB	Reimbursed expenses ONLY	NO SS# or ITIN
B-2/WT	Reimbursed expenses ONLY	NO SS# or ITIN
B-1/B-2/WB/WT (9-day Rule must apply)	B-1/B-2/WB/WT (9-day Rule must apply)	Must have SS# or ITIN

How to obtain a U.S. Social Security Number
or an Individual Taxpayer Identification Number (ITIN)

The Social Security Administration (SSA) issues Social Security numbers. The Internal Revenue Office (IRS) issues ITINs. The Social Security Office is located at 550 Government Street. The Internal Revenue Service office is located at 1110 Montlimar Drive.
 
Social Security Administration hours:
Monday-Friday, 8:30 a.m.-3:30 p.m. Telephone: 432-2002

Internal Revenue Service hours:
Monday-Friday, 8:30 a.m.-4:30 p.m. Telephone: 340-1794

What The Foreign National Will Need:

Social Security Administration

1.	Letter of Employment from South Alabama
2.	Completed SS Card application (obtain at SSA)
3.	Passport and I-94 card

Internal Revenue Service

1.	Completed From W-7
2.	Passport and I-94 card
3.	Second picture ID with country of citizenship listed (e.g. driver’s license military ID, etc.)

DEPARTMENTS: For Payroll purposes:

Here is a checklist of things the department MUST do when international guests arrive at South Alabama.

1.

Make a photocopy of __ the identification page of the passport (If Canadian, see A5.) __ the expiration date page of the passport __ the Form I-94, both the front and back

2.

If the visitors do not have U.S. Social Security Numbers, you will have to help them file for an Individual Taxpayer Identification Number (ITIN) at the local IRS office. While filing for a SS# or ITIN "on-site" will not generate a card immediately, make certain to have the officer at either agency make a copy of the application or an official receipt that you can present to Payroll. This will allow a check to be cut immediately, BUT TAX WILL BE WITHHELD. If you wait for the card to be issued, a check can be cut at that later time, and tax will not be withheld.

REIMBURSEMENTS ONLY? No SS# or ITIN is needed! Declaration Form only for B-2/WTs.

NOTE: For foreign nationals who do not have a SS# or an ITIN, departments will have to bear the burden of assisting the foreign nationals to obtain one. You are, however, providing a service to them that will assist them in any future visits to the U.S. for which they expect to receive payment. In any written communication with them, you may wish to add a statement such as: "We are pleased to assist you in obtaining your SS# [or ITIN], and please note that once issued, this will be your permanent number to present in any future situations where you receive payment in the United States."

Various related forms/documents can be found at the following links:

IRS website to download Form W-7 - http://www.irs.gov/pub/irs-pdf/fw7.pdf