Honoraria/Compensation for Services: B-1/WB
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Visitors who wish to enter the U.S. for business purposes can visit a U.S. embassy or consulate and apply for a B-1 visa.
They show this visa to the immigration inspector as they enter the U.S. and are given a status on their I 94 card of B-1.
Visitors from countries that are a part of the Visa Waiver Program do not need to obtain a visa before entering
the U.S. These visitors complete a green I-94 card and are awarded a status of WB on their I-94.
Business purposes include activities such as lecturing, consulting, workshops, and conferences. Visitors in B-1 or WB
status may not become Indiana University employees. WB status is valid for 90 days. B-1 status may be valid for up to a
year, but will be limited upon entry to a period that is fair and reasonable for the purpose of the trip. The official
expiration date is indicated on the I-94 card.
Honorarium. Individuals in B-1 or WB status may receive an honorarium as long as:
- The activity for which the visitor is being paid will last no longer than 9 days, AND
- The visitor has been paid by no more than 5 other institutions in the past 6 months
If the activity is expected to last for more than 9 days, please contact the campus international office. The visitor
will have to enter on a different visa status in order to receive payment for an activity longer than nine days.
A B-1/WB visitor who completes the activity of nine days or less may wish to stay on to undertake other services to
the university. The B-1/WB visitor may be reimbursed for travel expenses beyond nine days
(see B-1/WB travel).
To protect the visitor, however, the activity for which the honorarium is made should be specific to the nine days.
For example, an individual coming to give a lecture on one evening and then consult with IU faculty for a month may be
paid for the lecture, but should not be paid for the consultation.
An individual coming to IU to consult for a month, with no other duty assigned, cannot legally receive payment as a
B-1/WB visitor. An immigration inspector may not accept an argument that nine days of the consulting period was somehow
different from the 21 additional days and conclude that the event for which the individual was paid was 30 days in duration
and therefore not appropriate to the B-1 or WB status.
Payment Procedures
Departments should refer to financial and purchasing policies and procedures to determine the appropriate system to use
when processing an honoraria or compensation for services payment for a short term visitor. For tax purposes, honorarium or
compensation for service type payments are generally subject to income tax withholding unless an exemption applies.
In order to pay a B-1/WB visitor an honorarium or compensation for services, the department must collect the following
documentation:
- Tax Cover Sheet-International Short-Term Visitor
- Copy of I-94 Departure Card
- Form W-8BEN, Part I, questions 1-6 and Part IV.
If the visitor is a tax resident of country that has a tax treaty with the U.S., the visitor may be eligible to receive an exemption from the required income tax withholding. In order to apply for a treaty based exemption, the visitor must complete an International Tax Questionnaire (ITQ).
The tax department will process the tax questionnaire and determine if the individual is eligible to receive tax treaty benefits.
If eligible, an IRS Form 8233 will be generated
for the visitor to review and sign. A U.S. tax ID number, or proof of application for a U.S. tax ID number, is required before
Indiana University can generate the Form 8233. If the visitor does
not have a U.S. tax ID number but wishes to apply for one during their visit to IU, see
Applying for an ITIN to determine the appropriate process for your visitor.
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