| Honoraria Payments
to Foreign Visitors |
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| On October 21,
1998, President Clinton signed into law the American
Competitiveness and Workforce Improvement Act ("ACWIA"). |
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| AS LONG AS the
visitor will be participating in the activity at
USA no longer than nine (9) days, Section 431 of
the ACWIA law permits educational and nonprofit
research institutions to pay reimbursements for
expenses and honoraria to international visitors
engaged in short-term academic activities holding
either B-1 or B-2 visas or admitted into the U.S.
under the Visa Waiver Program classification WB
or WT. |
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| An Invitation
for Visitors Engaged in Academic Activities form
must be sent to the visitor prior to his or her
trip to the University. |
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| For visitor in
the United States in B-1, B-2, combined B-1/B-2,
WB, WT, and combined WB/WT status, a Declaration
by Visitors Engaged in Academic Activities Form
must be completed. |
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Click
on the arrow to the left to select the appropriate
form, in PDF format. |
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| FREQUENTLY
ASKED QUESTIONS |
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| Here is a short
Q & A to give you the basics on how to use this
new law. |
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| 1. |
Who
is allowed to receive reimbursements and honorarium
payments under the new "B Honorarium"
rule? |
| Anyone who, while
in "B" visa classification, engaged in
academic activities at an academic institution or
nonprofit research institution. The activity
can last no longer than nine days. Visitors are
limited to six such reimbursements or honoraria
payments in a six-month period. |
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| 2. |
What
is "B" visa classification? How do I recognize
it? |
| "B"
covers all of the following classification: B-1;
B-2; combined B-1/B-2; WB; WT; and combined WB/WT.
One of those notations must appear on the Form 1-94
card, Arrival/Departure Record, that is normally
stapled into the passport. |
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| 3. |
How
is this different from what we were doing before? |
| Under the old
law we could reimburse documented expenses only
to those admitted in B-1 or WB, "visitors for
business," status. We could not reimburse expenses
for those in B-2 or WT, "visitors 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
# 9. |
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| 4. |
How
do I document the "B Honorarium" classification
for the USA Business Office so they can authorize
expense reimbursement and honorarium payments? |
| Here is a
checklist of things the department MUST do before
or when an international guest arrives at USA. |
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- At least 20 days before the date payment
to the visitor will be made, IRS Form 8233
must be completed and sent to the USA Business
Office. Failure to submit Form 8233 before that
date could result in United States federal income
taxes in the amount of 30% of the payment being
withheld from the payment. Also, the Business
Office will review a claim of treaty benefits
on Form 8233, with the possibility that a denied
claim will result in 30% withholding. Form 8233
can be found by going to www.irs.gov/formspubs/lists/0,,id=97817,00.html
and selecting Form 8233.
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- Before the visitor arrives, if the
visitors do not have social security numbers,
you will have to help them apply for
an Individual Taxpayer Identification Number
(ITIN). It is advisable that the visitor applies
for the ITIN at least two months before leaving
the foreign country, because the Mobile, Alabama
IRS office does not issue ITINs. Payment of
the honorarium and expenses will not be made
until either the SSN or ITIN are furnished to
the USA Business Office. See SSN
and ITIN application procedures (PDF)
section.
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- When the visitor arrives, make a photocopy
of
_ the identification page of the passport (If
Canadian, click here)
_ the expiration date page of the passport(may
or may not be the same as the ID page)
_ the page of the passport with the visa on
it (certain countries are not required to obtain
a visa for entry to the US but this will be
noted on the I-94 card)
_ the Form I-94, front and back
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- When the visitor arrives, help the
visitor complete the form entitled "Declaration
by Visitors Engaged in Academic Activities"
sent to them as part of their invitation.
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- Send copies of the items and forms in 3 (if
available), 4, and 5, along with USA Form 99615
"Authorization to Provide Services,"
to the USA Business Office in an envelope labeled
"Foreign Visitor Information."
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| 5. |
What about the
Canadians? Sometimes they come in and have absolutely
no documentation. They often don't even carry or
have visas. |
| It is true. Canadians
are not required to carry or have visas and often
the US INS officers at the border just wave them
on through. 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 US in "B" status. |
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| 6. |
How will I know
all this? How will the visitor know all this? Who
is going to collect all this information? |
| To make this
as easy as possible for departments and for the
international guests, please see attached forms.
You should send it to the visitors as invitations
and then help them complete the declarations after
they arrive at USA. Visitors must make their own
declaration about their prior activities. The department
can and should confirm only what we know about this
visit to USA. The department is responsible for
making sure the form is completed, for making the
necessary photocopies, and for helping visitors
apply for the SSN or ITIN if necessary. The
department is not responsible for confirming other
visits or activities. |
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| 7. |
Do
I still need to request J-1 visas for any of my
guest lecturers? Can I just forget about doing that
now? |
| Those people who
meet the criteria (see Q1, Q2, and Q4 above) do
not need the J-1. The "B" visitor's 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 current procedure for such will
be followed. If J-1 status is needed, contact the
Office of Enrollment Services. (B-1/WB see Question
#9) |
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| 8. |
What's
the catch? This seems too good to be true. What
do I need to look out for? |
| You are right.
It is never as easy as it looks. Problems can occur
in the following situations. |
- 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
US 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.
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- If we don't get copies of the Form I-94, we
have no evidence that they were in an eligible
status.
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- If they don't have a SSN or ITIN, then
you cannot pay them. Pay would have to be
delayed until they could file for a number from
the home country, a process that can take a
number of weeks.
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- Nine days is the absolute visit limit, no
exceptions. Any activity lasting longer than
nine days does not qualify.
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- The academic butterflies flitting from school
to school may exceed their limit of six schools
in six months. If USA is school number seven,
the visit does not qualify and we cannot pay.
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| 9. |
If
the "B Honorarium" rules do not work for
me, what are the existing regulations related to
B-1/B-2 visa holders? |
| 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. |
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| 10.
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What
other procedures must the department follow? |
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The University's Form PR
99615 "Authorization to Provide Services"
must be completed and sent to the Business Office.
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| Official
reports and documents for the University of
South Alabama faculty and staff are available
in Adobe .PDF format. If you already have
the Adobe Acrobat Reader you're all set to
download. If not, you can download the FREE
Acrobat Reader by clicking the graphic below:
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