Non-Affiliate Payments

• Best Use: For people who will be on-campus daily, or with a set schedule of recurring nature.  If an employee/employer relationship exists, put on payroll.

• Paperwork Requirements: Varies, check with Business Office (Ping Loveland).

• When appropriate: For people providing a shorter term service, which is academic in nature.  These arrangements should be non-recurring, and for a defined period of time.  Type of activities includes the following: guest speaker, lecturer, artist, performer, writers/editors, mentor, etc. 

• Could pertain to: Visiting Scholars, Visiting Fellows, Copy Editors, Performers

Paperwork Requirements-

1. Limited Engagement Agreement (Links to US Citizens and Non-resident Aliens): (US citizens vs. Non-resident Aliens).

2. Invoice

*Non-Resident Aliens will also need:

• Passport

• Visa (w/entry stamp)

*When the above is complete, a payment request form will be initiated with by the Business Office.  Expect a check to be available in approximately 3-4 weeks.

PennKey: Link here.  Select “Persistent: Guest”
PennCard: Link here.  Budget code is required, please contact the Business Office prior to going to PennCard Center.
Travel: Paid directly by Penn where possible, otherwise included on invoices with payments for services.  Receipts should be kept and checked, but no GTR is needed.

• When appropriate: An esteemed guest presenting at or attending a workshop, conference or other routine academic activity, at our request. 

• Honoraria are payments designed to confer distinction or symbolize respect for the recipient.  They are given at our discretion only, and not to be a fee for services/negotiated amount or correspond to an amount the individual has requested (i.e.- no invoice should be received!).

• The activity must last no more than 9 days, and be of no charge to the public.

• Follow payment information in the link to travel and honoraria guide: Guest Travel & Honoraria Payment Documentation

Honoraria, Non-Affiliate, US Citizen/resident alien:

To register:

• Payee "supplier" name and valid email address

• Honoraria Memo

             Should include the reason for the payment, and date/location of the activity or event 

Required Documentation:

• Form W9 to be submitted at registration

• Taxability: Taxes will not be automatically withheld in this situation, although it is still reportable income to the recipient- who bears the burden of reporting and paying taxes each year.

• Within 72 hours of entry into the supplier portal, the payee or supplier will reiceve a link to register. They are responsible for entering their banking information and tax documents.

Honoraria, Non-Affiliate, Non-US Citizen:

To Register in the Marketplace:

• Payee "supplier" name, valid email address, and notification of Non-Resident Alien status

• Within 72 hours after the supplier request has been submitted the payee or "supplier" will recieve a link to register with the university. They are required to supply their complete banking information and tax documents.

  • Form W-8BEN

  • Main page of Passport photocopy

  • Certificate of Foreign Source Income

  • Foreign Visitors Honoraria Eligibility Certification: Honoraria Eligibility Form

  • Photocopy of I-94 or Stamp of Entry

  • Memo or flyer documenting participation, date, and location of event

You are required to complete a individual Calculus record to receive payment:

• Completion of Sprintax Calculus. Non-US Citiziens will receive a link within a week of Onboarding. It will contain instructions to access the site and compete a record that will determine an individual's tax status and if they are eligible for exemptions or treaties. 

• Failure to complete a Calculus record in a timely manner can could cause income to be taxed incorrectly. The University will not refund taxes on payments submitted before a record is complete.

  • In order to complete the Calculus email, the following documents will complete your record:

  • Passport

  • Admission Record or I-94

  • Social Security Card (if you do not have one, you can still complete the section)

  • Immigration documents (I-20, DS-2019 or employment authorization card)

Tax treaty benefits must be renewed annually. An email will be received in January as a reminder to renew. 

Taxability:

Honorariums paid to foreign, non-affiliates default to having an automatic federal tax withholding (30% of the payment). 

• In some cases, tax treaties may be available that will reduce the tax rate, or entirely exempt the payment from the automatic US federal tax withholding.  This will be determined by meeting all of the following conditions:

• Individual must be resident of a country that has a current tax treaty with US.  Link to: Countries Eligible for Tax Treaty.

• Individual must have a US provided SSN (social security number) or ITIN (Individual Taxpayer identification number).

• The payment may not be for an activity that lasts longer than 9 days.

• If they entered the country on a visa, we must confirm their visa will allow them to receive an Honorarium

• We will notify the tax office they are likely eligible for the tax treaty.  The tax office will confirm and provide the IRS Form 8223.  The individual will have to verify the information is accurate and then sign off on the form.  Once returned, their payment will be processed with the tax treaty benefits applied.

• *If an individual does not claim the tax treaty, but is eligible, they may always claim the treaty exemption on a US income tax return directly with the IRS.

   

Guest Travel, Non-Affiliate, US Citizen/resident alien:

• Payee "Supplier" name and valid email address

• Guest Travel Reimbursement form filled out and signed. Link to: GTR Worksheet

• Receipts scanned with GTR worksheet (if there are missing receipts, include memo approving those expenses)

• Any additional forms required by the business office

 As with all US residents, once the link has been sent, they are required to upload their banking information and tax documents.

Guest Travel, Non-Affiliate, Non-US Citizen:

• Payee "Supplier" name, valid email address, and notification of Non-Resident Alien status

• Any additional forms required by the business office

With 72 hours of entry into the supplier portal, an email will be sent with the registration link. The supplier is responsible for uploading their tax documents and complete banking information.

• (individual signature only)  Link to: W-8BEN.  Instructions:

  • Part 1- Complete Items 1 through 4.  Items 5 through 8 are not mandatory, only complete if necessary.

  • Part II- Complete Item 9 only

  • Part III- Sign & Date

Reimbursements to Businesses, Charities, or Affiliated Groups:

Penn Global does not forward honoraria to businesses, charities, or affiliated groups. Honoraria must be paid to the individual it was offered to, and they reserve the right to donate it after the honoraria is paid.

Penn Students, faculty, and staff

Must submit all expenses via Concur.

Independent Contractor is defined as an individual performing a specific job at the University. 

It can be reoccurring, longer term, or consulting in nature.  These are highly nuanced and require a significant paperwork. Consult with Business Office before engaging.

Penn Global does not agree or commit to work until the proper classification has been completed and signed by Sourcing@Penn.