Honoraria are payments made to a professional person for services where compensation is not legally or normally required. Any payment made to an NRA is reportable income to the IRS and subject to 30% federal tax withholding unless exempted by a tax treaty.
The NRA will need either an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) to be able to be considered for tax treaty treatment. The individual will also need to file a tax return by April 15 of the following year.
Honorariums can be paid to the following visa types: B-1, B-2, WB, WT and J-1.
Eligibility to receive an honorarium is not only determined by the visa type but also the 9-5-6 Test. In order to qualify under the 9-5-6 test a visitor can be present at UTSA for no longer than 9 days and have not accepted payment or expenses from more than 5 institutions in the previous 6 months.