To: University Purchasers
Subject: Honorarium Payments to Visitors
Date: November 13, 2014
The University of Pittsburgh’s PantherExpress team is pleased to announce an expansion of the PRISM Internet Expenses application to include honorarium payment requests effective November 17, 2014.
The PantherExpress System form for honorarium payments will be taken off line on Friday and the new honorarium payment method through PRISM Internet Expenses will be available on Monday, November 17, 2014. Disabling the form from the PantherExpress System will not affect transactions that are already in the System.
The University often pays honorariums to visitors. Examples of visitors include members of Boards of Visitors, guest speakers, panel members, judges, peer or program review members, and symposium speakers. The University may agree to either reimburse visitors’ travel & business (T&B) expenses or only pay an honorarium. In some cases, the University may also agree to both (reimbursement and honorarium payment).
Streamlined one-stop payment functionality coming soon
In order to simplify the request to pay honorariums and expense reimbursements to U.S. visitors, we have expanded the PRISM Internet Expenses application for online T&B processing to include honorariums. This enhanced functionality will be available effective November 17, 2014, will allow users to enter both the expense reimbursement and honorarium payment on one expense report in one system, and will replace using the PantherExpress System for guest speaker payments.
Although substantiated expenses are not tax-reportable according to IRS regulations, honorarium payments are tax-reportable. The IRS requires that all tax-reportable payments totaling more than $600 in a calendar year must be reported to the IRS and U.S. payees on IRS form 1099. In order to separately report the honorarium as tax-reportable, the following new “Expense Types” have been added to the “Non-Employee, Payment” process within PRISM Internet Expenses so that you may enter the amount of the honorarium:
- Honorarium – Board of Visitors
- Honorarium – Guest Speakers
- Honorarium – Judge
- Honorarium – Other
- Honorarium – Panel Members
- Honorarium – Peer/Program Review
- Honorarium – Symposium
Payments to visitors – information that is required
In addition to identifying the type of honoree, you also must provide an IRS form W9 if the honoree has not been paid within the last 24 months.
Payments to visitors - information that is NOT required
In accordance with the Provost’s email dated August 27, 2014 to Deans and Department Chairs titled “Visitors to Campus”, payment requests for visitors do not require a Speaker or Visitor Agreement. Consistent with previous practices, a Directed or Sole Source Justification form will not be required, nor will a certificate of insurance. Although the Guest Speaker Agreements have been discontinued, if you desire to record speakers or retain rights to the content presented, you must document the speaker’s grant of permission and transfer of rights in writing. A new streamlined “Speaker/Participation Content Recording Agreement” is available from the Office of the Provost website.
Other types of payments to visitors that may not be processed through PRISM Internet Expenses
It should be noted that this process may not be used for professional speakers who would like to execute a contract with the University. Unlike guest speakers, whose primary reason to visit is to share knowledge and expertise, professional speakers conduct lectures as their primary trade or business and are frequently represented by speakers’ bureaus. While the University does not require a contract for professional speakers, the professional speakers themselves may require that the University sign a contract. If that is the case, please submit the contract provided by the speaker to Purchasing Services through the Supplier Provided Agreement specialty form in the PantherExpress System.
On occasion, University departments require entertainers, musicians, artists or other similar performers. There may be special contract requirements and documents for these presenters. Please contact the procurement specialist assigned to your area to discuss contracts for these services.
How to use the new honorarium functionality
You must be granted access to the “Non-Employee, Payment” process. Detailed instructions are located on this page. If you are a current Internet Expenses user and do not yet have access to the “Non-Employee, Payment” process, please contact Heather Lego.
How to pay foreign national visitors
We are currently working on automating the process of requesting payments for foreign national honorariums and associated expenses. Until the automated process is available, please continue to submit as you have in the past. If you have questions about paying foreign nationals, please contact PantherExpress Customer Service by submitting an online inquiry or by calling 412-624-3578.
Since there have been many questions regarding the requirements for paying visitors, we have planned a live question and answer session. This session will also include a brief demonstration of the new system functionality. Please register for this session by using the link provided below.
As always, it is a pleasure to serve your purchasing needs. If you have questions, please contact PantherExpress Customer Service by submitting an online inquiry or by calling 412-624-3578.