Honoraria/Compensation for Services: J-1 Non-Students
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The J-1 category is an option for short-term visitors for whom we wish to compensate for an activity longer than nine days.
There are two groups of J-1 visitors who may be at IU for a short period (1) J-1 Short-Term Scholars on a document prepared
by Indiana University and (2) J-1 scholars or professors (or members of other J categories) who are in the United States on
documents prepared by another university.
J-1 Short-Term Scholars Sponsored by Indiana University
If you wish to compensate an individual involved in an activity lasting longer than nine days, but not longer than six
months, and that individual is currently outside the United States, then the J-1 Short-Term Scholar category may be a good
option. It is best to begin the process at least two months before the visit. The more advance notice the better.
- Contact the international office. Campuses served by the Bloomington Office of International Services can initiate this
process by completing the J-1 Application process in iStart.
Other campuses will be using this starting point in the future. The international office can advise on the advantages and
disadvantages of this status for particular cases.
- If you decide to pursue this option, the international office will prepare a DS-2019 and send it to you.
- You should send it to the future visitor (express mail is advisable).
- The future visitor must take this document to the US consulate or embassy as part of an application for a J visa.
If the visa is granted, a stamp is placed in the visitor's passport. (Canadians do not need to take this document to the
consulate.)
- The visitor presents this passport and the DS-2019 when entering the U.S.
- When the visitor arrives on campus, the visitor must check in with the international office.
- When the visitor departs, the department must inform the international office.
- *** Home Residency***
Health Insurance. Federal regulations require all J 1 visitors to have adequate health insurance coverage during
their stay in the U.S. A waiver of the I.U. mandatory coverage can be given only if the specifics of the visitor's insurance
coverage meet the minimum level required ($50,000 per illness or accident, $10,000 medical evacuation, and $7,500 repatriation).
Advise visitors to bring a copy of their policy with relevant points in English, or to purchase insurance from I.U. at a weekly
rate.
J-1 Visitors Sponsored by Other Institutions
Most J-1 visitors who are sponsored by other institutions may receive compensation for services during a brief activity at
IU. These visitors are usually already in the United States at the institution that prepared their DS-2019. Before non-IU
J-1 visitors can accept an honorarium payment, they must secure written authorization from their sponsor. Different sponsors
will have different standards for this written authorization. It is very important, if visitors wish to protect their J status,
for them to obtain this written authorization. We recommend that you ask them to provide a copy of that authorization as a way
to assist them in protecting their status.
If a J-1 visitor does not secure proper authorization before receiving an honorarium, the federal government may determine
that the visitor is out of status. The visitor loses all privileges of the visa and must leave the U.S. at once.
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 J-1 short-term 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 submit the following documentation:
- International Tax Questionnaire (ITQ).
- Copy of current DS-2019
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 and a
supplemental certification statement 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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