Payments:
The Visitor may be paid an honorarium, receive reimbursements for incidental expenses, or both.
Honoraria or payments for professional services are treated as income, are subject to reporting and taxation,
and are paid through University Payroll Services. Reimbursements are not treated as income and are not subject to reporting or
taxation. The reimbursement check is issued by Disbursement Control but must have prior University Payroll Services approval.
Submit paperwork for reimbursements to University Payroll Services; we will review and forward to Disbursement Control.
Terms and Conditions:
There are restrictions on the types of payments which can be made
to certain visa holders. See note #1 below in this FAQ for detail. Before inviting your visitor,
ensure that the visitor is allowed to receive honoraria or payments for professional services, and/or reimbursements. Additionally, there are paperwork requirements
also detailed below. Be sure your visitor schedules sufficient time in his or her visit to satisfy all of these requirements–
for example, in certain situations the visitor is required to visit both a Social Security Administration office and University Payroll Services
to complete the necessary forms to apply for an Individual Taxpayer ID Number ("ITIN"). See note #2 below.
Note #1:
"B" visas (including B1, B2, visa waiver, and WB/WT): The activity may not last longer than 9 days,
and the visitor must not accept payments from more than 5 institutions within the previous 6 months.
F, J, or TN visas: See below for detail to determine if the visa holder may or may not receive honoraria or payments
for professional services, and/or reimbursements.
H visa holders: May not receive honoraria or payments for professional services. May receive reimbursement for expenses only.
O visa holders: May not receive honoraria or payments for professional services unless USC is a sponsor or a co-sponsor.
May receive reimbursement. Contact University Payroll Services for assistance before the visitor arrives.
Note #2:
Taxpayer ID number: If the visitor is receiving honoraria or payments for professional services, the visitor must
either have a social security number, an Individual Taxpayer I.D Number
("ITIN"), or have applied for same. See FAQ on Individual Taxpayer ID Numbers for more information. If the visitor is receiving reimbursement only, a taxpayer ID number should be provided by the visitor if she or he already has one, but is not required.
What questions should I ask my visitors in preparation for their visit to USC?
- What is your current Visa status/classification?
Ensure visitor's visa classification allows for payment type (honoraria or payments for professional services or reimbursement).
Contact the Office of International Services to determine the appropriate visa status.
- Do you currently have an ITIN or SSN Number?
If your visitor is receiving an honoraria or payments for professional services, the visitor must either possess
a taxpayer identification number (Social Security Number or Individual Taxpayer Identification Number),
or have applied for one. If your visitor does not have one of these numbers, the visitor must schedule sufficient time during
their visit to apply for one. The tax treaty benefit may only be granted if the visitor actually has either a Social Security
Number or Individual Taxpayer Identification Number. “Applied for” is not sufficient to grant the treaty benefit. See sections
below "Is a Social Security Number (SSN) or an Individual Taxpayer
Identification Number (ITIN) Required?" and "How does the International Visitor apply for
or obtain a Social Security Number or ITIN?" for more information. If the visitor is receiving reimbursement only,
an ITIN or SSN is not required but should be provided by the visitor if he or she already has one.
- Are you from a non-visa country?
What is the required paperwork?
(Check Off List)
- Disbursement Control Check Request (Note: If the visitor is receiving both honoraria or payments for professional
services and also reimbursement, 2 separate Check Requests are required.)
- Employee vs Independent Contractor Check List (available from Disbursement Control, http://fbs.usc.edu/depts/DC/ click on "Forms" then select "Independent
Contractor Forms")
- Certificate of Academic Activity ("B" class visas only)
- Non-Employee Short Term International Visitor Questionnaire
- 8233, or W-9 and attachment if claiming a tax treaty (honoraria or payments for professional services only)
- B visas: copy of passport and I-94 or arrival stamp
- Other visas: copy of passport, I-94 or arrival stamp, visa documentation; if USC is not sponsor, need approval on
letterhead from sponsor's equivalent of the Office of International Scholars (OIS).
- Copy of SSN or ITIN if available, or
- Copy of W-7 if visitor applied for an ITIN (honoraria or payments for professional services only)
- Travel/Non-Travel Expense Report and receipts (reimbursement only)
NOTE: Department must ensure:
- All required paperwork is present; all forms are completed in ink.
- If necessary, the visitor has applied for a Social Security Number or ITIN.
- Verify all information on forms is accurate and complete, especially visitor's address in their home country.
- Submit all paperwork as soon as possible.
What is the taxation of these payments?
All honoraria or payments for professional services payments are subject to federal taxes unless there is a
tax treaty and the visitor completes the Form 8233 or W-9 to request the treaty, and the visitor either has a
Social Security Number or an Individual Taxpayer ID number. In addition, honoraria or payments for professional services
payments are subject to 7% State of California taxes for monies in excess of $1,500 per calendar year.
There is no taxation on reimbursements.
Where do I pick up the check after University Payroll Services' review?
University Payroll Services will issue the check for honoraria or payments for professional services upon
completing of review. Payroll will then contact the person listed on the check request and make arrangements for pickup.
If the individual designated for pick up is not the Home Department Coordinator or otherwise authorized to pick up
payroll checks, that person must bring photo identification with them in order for us to release the check.
Reimbursement checks are handled by Disbursement Control. Payroll will review the reimbursement check request and forward
to Disbursement Control for check issuance.
What special conditions must be met by "B" classification International Visitors (B1, B2, WB or WT)?
- The academic activity does not last longer than nine (9) days at a single institution.
- The Visitor must not accept such honorarium or reimbursement for incidental
expenses from more than five (5) institutions within the previous six months.
- Must have either an I-94 card or arrival stamp to receive payments (includes visitors
from "visa waiver" countries).
What special conditions and restrictions apply to F, J, H, O, or TN visa holders?
Which visa types may receive payments?
- F-1:
USC is Sponsor:
Honoraria or payments for professional services: No
Reimbursement: Yes
USC is not the Sponsor:
Honoraria or payments for professional services: No
Reimbursement: No
- F-1 with Optional Practical Training:
Honoraria or payments for professional services: Yes
Reimbursement: Yes
- J-1
Honoraria or payments for professional services: Yes
Reimbursement: Yes
* If USC is not the sponsor, the individual must have an approval on letterhead from the sponsor's equivalent of
the Office of International Services (OIS).
- J-2:
Honoraria or payments for professional services: Yes
Reimbursement: Yes
- H-1:
Honoraria or payments for professional services: No
Reimbursement: Yes
- TN:
Honoraria or payments for professional services: Yes *
Reimbursement: Yes
* If USC is not the sponsor, the individual must have an approval on letterhead from the sponsor's equivalent of OIS.
- O-1:
Honoraria or payments for professional services: Yes *
Reimbursement: Yes
* Only if USC is the sponsor or included as a co-sponsor. Contact University Payroll Services.
Are there some visa types which cannot receive payment?
Yes. Types of visa which may not receive payments include: A, F-2, G, H-4, I, O-3, P, and R.
If your visitor has a different visa type than is listed above, you must contact University Payroll Services before
the visitor begins the visit to determine if it is allowable for USC to pay the visitor either an honorarium or reimbursements.
Who completes the Certificate of Academic Activity? Who does not? Where can I get the form?
The Certificate must be completed by all International Visitors on a "B" visa (B-1, B-2, WB, WT).
It is not required of visa holders such as F, J, or H. The form may be found in the Forms section.
Is a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) Required?
Yes, if the visitor wishes to claim a treaty, the visitor must either present a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) before payment is made. If the visitor does not do so, the treaty will not be granted and the payment will be subject to federal withholding taxes.
NOTE: If the visitor will need to apply for an ITIN or Social Security card, the visitor must schedule ample time in their itinerary to visit both the Social Security Administration Office and University Payroll Services during business hours before the visitor departs the US. Please see our FAQ on "Individual Taxpayer ID Number" for information on applying for an ITIN.
How does the International Visitor apply for or obtain a Social Security Number or ITIN?
If the visitor holds a visa which is eligible for employment, (F, J, H, O, or TN visa), the visitor must first apply
for a social security number at any convenient Social Security
Administration Office to obtain a Social Security Denial Letter from SSA before they may apply for an ITIN through USC.
International Visitors who are not eligible for a social security number, such as B-type visas, and who do not already have a Social Security Number or ITIN, and who need a taxpayer ID may be able to apply for the ITIN while they are in their home country prior to their arrival in the US, or by visiting University Payroll Services during their visit.
To apply via University Payroll Services the sponsoring department should request an appointment in writing in advance by
submitting the ITIN Appointment Request memo, and the visitor must appear
in person at University Payroll Services with the proper documentation:
University Payroll Services:
UPC 213-740-8855, or
HSC 323-442-2775
See the "Individual Taxpayer Identification Number" FAQ for greater detail.
The visitor may apply for an ITIN either directly from the IRS, or from certain countries. See the IRS Publication 1915 at www.irs.gov (or search for "applying for ITIN abroad"). Also, the visitor has the option of applying for an ITIN when filing their income tax return with the US tax authority.
What are the requirements if all work is performed outside the United States?
When an independent contractor performs a service entirely outside the United States (the individual never enters the US), the monies earned are neither reportable nor taxable in the US. Please refer to Disbursement Control "Policies and Procedures for Classifying and Paying Independent Contractors".
Use a Disbursement Control Check Request Form, attach an invoice or state clearly what services were performed outside of the U.S., and what time period.
Is there any year-end reporting by USC?
Honoraria or payments for professional services:
Yes. Form 1042S will be generated by Payroll Services in January for the previous calendar year. The form will
be mailed to payee's permanent address in their country of residence. Payment and tax information is supplied
to the IRS as well as tax authorities in the payee's country of residence.
Reimbursements:
No. There is no reporting or taxation on reimbursements.
What if I have more questions?
You can e-mail to University Payroll Services at payroll@usc.edu or call 213-740-8855.
We will get back to you as quickly as possible.
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