1. State Funded Independent Contractors (Honoraria)
Business Day 2011

2. Agenda 3 Most Common Errors Determination of Worker’s Status
Employee vs. Independent Contractor
International Issues/Processing
Regulations
New Statewide Financial System

3. 3 Most Common Errors Missing Authorized Signature
Missing information about the payer
Missing the Determination of Worker’s Status

4. Authorized Signature
Authorized person in the department must sign on part VII

5. Information about the payer

6. Determination of Worker Status
Required when submitting honoraria
Determine Employee vs. Independent Contractor
Honoraria will no longer be accepted without determination
Can not pay as honoraria to avoid taxes, fringe etc.

7. Determination of Worker Status

8. Determination of Worker Status

9. International Issues/Process
International visitors can be paid without an SSN or ITIN-result is 30% tax
All paperwork must be submitted (Form A, Form B, copy of passport and I-94)
If tax treaty eligible, 8233 paperwork will be sent and honoraria held until 8233 is returned.
Canadians are an exception and can be paid honoraria without a visa or I-94.
Visitors should obtain a B1/B2 visa for honoraria, there are few exceptions

10. International Issues/Process
Visitors in the following categories are not eligible for honoraria
H-1B, O-1, TN (can only receive wages from sponsoring employer)
F-1 students who do not have an employment authorization document
There are always going to be unique situations that do not follow the norm, please call us before promising payment

11. Rules and Regulations
Must be the appropriate form of payment not the easiest
US Citizens will received a 1099 if they earn more than $600 in a calendar year
International visitors will receive a 1042-S
Payments made to individuals outside the US are foreign sourced and require no tax withholding or reporting
If payment for services will exceed $20000 within a fiscal year, a contract should be entered into

12. Rules and Regulations
If the payee has been paid by the State of New York as an employee in the same calendar year, they must be paid as extra service through the State payroll system.
State employment includes any other State college or university as well as the Department of Corrections, Department of Transportation etc.

13. New Statewide Financial System (SFS)
Go Live Date
Every person receiving honoraria will have to be added to the new system prior to being paid
Required information: W9 for US Citizen, W8 for Foreign citizen.
This will not change anything for foreign visitors coming to the US and receiving honoraria, they will continue to be paid through State Payroll and not the SFS system.
NYS Foreign Vendor registration request form must be included for foreign visitors being paid through Accounts Payable. (never entered US or travel reimbursements)

14. Per NYS payment guidelines What is a foreign vendor: A foreign vendor can include a corporation that was created or organized outside the United States and has a legal address outside the United States, or an individual whose permanent residence is outside the United States.
When registering a foreign vendor, NYS Vendor Management Unit uses the Foreign Vendor Registration Request Form, in conjunction with the appropriate Internal Revenue Service (IRS) Form W-8 Once an individual is paid from NYS funds a vendor ID is obtained. Procurement services will provide that number to the department for use in future payments.

15. CONTACTS
University Human Resources-Forms, International issues, and Verification of State employment Michael Lukasik Carlos Gallardo Amanda Brown

16. CONTACTS
Accounts Payable/Travel- Payments, Statewide Financial System, and Regulations Heidi Retzer

17. State Funded Independent Contractors (Honoraria)
Questions