There are two issues here – a) Are the foreign visitors allowed to work and receive payments from an immigration standpoint? and b) Are there any tax liabilities from an IRS standpoint?
Generally individuals on a B-1 or B-2 visa are not authorized to work in the United States. However, a special provision was made for higher education institutions effective October, 1998. A new law permits a university to pay honoraria and incidental expenses for a usual academic activity lasting not longer than 9 days at any single institution. The foreign national may not accept payment or expenses from more than 5 institutions within the previous 6 month period. Therefore, an academic honorarium certification must be completed by the foreign national. We recommend that you obtain the certification from the foreign visitor prior to finalizing a speaking engagement. The foreign national must also present a valid visa and Form I-94, Record of Arrival and Departure, as verification of immigration status. As far as the taxes are concerned, honoraria payments are subject to 30% tax withholding absent tax treaty language to the country. Therefore, it is important for the foreign visitor t
