Why does it take longer for international participants to receive honorarium payments?

There are other considerations to keep in mind when it comes to honorarium payments to international participants, including but not limited to:

Foreign Individuals/CA Nonresidents (activity in U.S. and California):

• Need to confirm the individual is eligible for payment under current U.S. immigration status prior to activity.
• Need to enter into GLACIER.
• Tax determination by Tax Services is needed for correct tax withholding from the gross payment amount.
• Need to confirm the individual is eligible for payment by UC Merced Export Controls (U.S. Treasury, Office of Foreign Asset Control)
• The amount is Form 1042-S reportable income to the individual. Federal tax withholding of 30% applies unless tax treaty exempt.
• California Nonresident withholding 7% deducted from the gross honorarium payment if payments made to an individual exceed $1,500 in a calendar year. The amount is reportable on annual CA FTB Form 592-B.

Foreign Individuals/CA Nonresidents (activity in the U.S. but outside California):

• Need to confirm the individual is eligible for payment under current U.S. immigration status prior to activity.
• Need to enter into GLACIER.
• Need to confirm individual is eligible for payment by UC Merced Export Controls (U.S. Treasury, Office of Foreign Asset Control)
• Tax determination by Tax Services is needed for correct tax withholding from the gross payment amount.
• The amount is Form 1042-S reportable income to the individual. Federal tax withholding of 30% applies unless tax treaty exempt.

Non-US Citizens (Foreign)/CA Nonresidents (activity outside U.S.):

• No tax reporting or withholding; taxable income in a foreign country to the individual.
• Need to confirm the individual is eligible for payment under UC Merced Export Controls (U.S. Treasury, Office of Foreign Asset Control)
• One-time payment does not create a nexus for UC Merced to register in the country.
• Tax determination by Tax Services needs to be done to ensure payment is made outside of the United States (additional foreign source income statement form may be necessary).