Guest Lecturer and Speaker Remuneration Policy

Overview

Payments by the University to individuals for guest lectures and speaking engagements, whether for a fee or as a token of appreciation, must be processed in compliance with the respective taxation requirements and legislations. The University bases the following policy and procedures on the Income Tax Guide issued by CAUBO for Canadian universities and colleges.

Refer to the Procedures for details regarding the implementation and interpretation of the following policies.

Definitions

A GUEST LECTURER/SPEAKER REMUNERATION is a pre-established or token amount paid to a person with expertise in a particular field to give one or a few lectures for the University. The payee has no appointment with the University and is engaged for his or her expertise on a particular topic (rather than as a substitute for a regular instructor). A guest lecturer/speaker has no ongoing responsibility to the participants (e.g. grading).

The term HONORARIA was generically used in the past to describe these types of payments and other contributions towards a specific activity. This term shall no longer be used and will be replaced by GUEST LECTURER/SPEAKER REMUNERATION to describe payments received by these individuals.

RELATED TRAVEL EXPENSES incurred by the guest lecturer/speaker may be paid by the University. This may take the form of direct reimbursements for out-of-pocket expenses, or amounts paid to a third party (e.g. hotel or travel agency) on behalf of the guest lecturer/speaker.

Policy

P1. to P4.

P1.
Guest lecturer/speaker fees paid to a University employee are processed via Payroll and is considered employment income (included in T4 Statement of Remuneration).
P2.
Guest lecturer/speaker fees paid to a non-employee who is a resident of Canada are processed via Payroll and will be reported on Form T4A as other income.
P2.1.
Any reasonable reimbursement of travel expenses incurred by the guest lecturer/speaker is processed in adherence to the Reimbursement of Travel and Other Expenses Policy & guidelines.
P3.
Guest lecturer/speaker fees paid to a non-employee who is not a resident of Canada, and who travelled to Canada, must be processed via Payroll and will be reported on Form T4A-NR (Statement of Fees, Commissions or Other Amounts Paid to Non-Residents for Services Rendered in Canada).
P3.1.
Any reimbursement of travel expenses incurred by or on behalf of the guest lecturer/speaker is processed in adherence to the Reimbursement of Travel and Other Expenses Policy & guidelines. All reimbursement amounts (either paid directly by non-resident or to a third party on behalf of the nonresident) will also be included on Form T4A-NR under ‘travel expenses.’
P3.2.
Non-residents are subject to withholding tax on all such fees received. To apply for a reduced amount of withholding tax, the individual must complete Regulation 105 Waiver Application (signin is required). Non-residents must apply for an individual tax number (ITN) by completing Form T1261 (sign-in is required) (exception: person has previously obtained a SIN or ITN).
P4.
Guest lecturer/speaker fees paid to a non-employee who is not a resident of Canada, and who did not travel to Canada, must be processed via payment request

Procedures

PR1. Administrative Responsibility

PR1.1.
The administration and overview of the POPS One-Time and Casual Payroll processes are under the responsibility of Human Resources. As such, any related inquiries should be directed to the Human Resources Shared Services Unit at (514) 398-4747, or send by pops.hr [at] mcgill.ca (email).

Any dispute will be resolved by the Centre of Expertise, Payroll.
PR1.2.
The administration of travel and other personal reimbursements (i.e. Requests for Expense Reimbursements) are under the responsibility of the Travel Desk section of Accounts Payable, in Financial Services. As such, related inquiries should be directed to the Travel Desk Customer Service Call Centre by TravelDeskhelp.acct [at] mcgill.ca (email).

Any dispute will be resolved by the Manager, Transaction Services
PR1.3.
The administration of payment requests is under the responsibility of Accounts Payable, in Financial Services. As such, related inquiries should be directed to Accounts Payable by accountspayable [at] mcgill.ca (email).

Any dispute will be resolved by the Manager, Transaction Services

PR2. Administrative Systems

PR2.1.
POPS (Payroll One-time Payment System) is the obligatory tool used to pay guest lecturer/speaker fees.
PR2.2.
All requests for expense reimbursements must be submitted using the Advances and Expense Report menu which is accessible via the Minerva Employee and the Minerva Finance (Fund) Administration menu. It is important to remember that the Travel Desk cannot act on an electronic submission until the signed form and receipts are received.

PR3. Administrative Process

PR3.1.
The process for paying a guest lecturer/speaker fee is outlined below, based on the status of the guest lecturer/speaker and their relationship to the University.
 

Is the guest lecturer/speaker:

Is the guest lecturer/speaker:

A University employee?

A Canadian resident? Travelled to Canada To process guest lecturer/speaker fee To process reimbursement of related travel expenses Refers to Policy # listed above

Yes

 

n/a n/a Via POPS as a miscellaneous payment – use payment type M1 (special academic) n/a P1.
No Yes n/a Via POPS using a payment type of AT (T4A payment, academic staff) Via Advances and Expense Report menu in Minerva as a Request for Reimbursement in accordance with the Reimbursement of Travel and Other Expenses Policy & guidelines. P2.
No No Yes

If the guest lecturer/speaker travelled to Canada:

Via POPS using a payment type of AN (non-resident T4A)

Special requirements:
Non-Residents must apply for an individual tax number (ITN) by completing Form T1261 (sign-in is required) (exception: person has previously obtained a SIN or ITN).

To apply for a reduced amount of withholding tax, the individual must complete Regulation 105 Waiver Application (sign-in is required) and include a photo ID (e.g. copy of valid passport or driver's license). The unt includes this paperwork with the POPS payment so the Payroll Office can coordinate a response from the government.

All documentation must be submitted to Payroll at least 30 days prior to the speaking engagement (due to processing with the goverment).

If the guest lecturer/speaker travelled to Canada:

Via Advances and Expense Report menu in Minerva as a Request for Reimbursement in accordance with the Reimbursement of Travel and Other Expenses Policy & guidelines.

Special requirements:

Check the ‘Non-Resident’ flag on the Expense Report, for all claims paid to the individual or to a third party on behalf of the non-resident.  This will ensure all travel expenses will be included by Payroll on Form T4A-NR under ‘travel expenses.’
P3.
No No No Via Payment Request Via Payment Request P4.
PR3.2.
To substantiate the guest lecturer/speaker fee, include any written invitation or agreement with the individual, or a copy of the poster or pamphlet relating to the speaking engagement.

PR4. Roles and Responsibilities

PR4.1.
The Hosting Unit originating the payment is responsible for informing the recipient of the required documentation and related income tax implications, and ensuring the documentation requirements are met to avoid payment delays. It is also the responsibility of the Unit to ensure the ‘non-resident’ flag is checked in the expense report (to be completed from the Advances and Expense Report menu in Minerva) for all related travel reimbursements (either paid directly to the non-resident or to a third party on behalf of the non-resident).
PR4.2.
The POPS Submitter is the individual transmitting the payment via POPS, either preparing the data themselves, or reviewing and submitting entries prepared by others. The POPS Submitter ensures the category of payment is appropriate, and that the supporting documentation is provided to the Payroll Office as well as retained in accordance with the University’s retention schedule. The POPS Submitter is the point of contact in the event of an audit or compliance review, to answer questions and provide supporting documentation.
PR4.3.
The Fund Financial Manager (FFM) is the academic, researcher, or administrative staff responsible for the fund(s) being charged for the Guest Lecturer/Speaker fee and related travel costs. In accordance with the Fund Financial Manager policy, the FFM of each fund charged is responsible for ensuring such payments are legitimate, appropriate, and reasonable for University purposes only and in accordance with University policies and guidelines. Furthermore, the FFM ensures compliance with any restrictions associated with the funding contributions (e.g. donors, agencies).

PR5. Glossary of Terms

Glossary of Finance Terms available in the Financial Services Knowledge Base

Regulation 105 Waiver Application & Form T1261 Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents (sign-in is required)

Fund Financial Manager policy

University Record Retention schedule


Publication Date: February 13, 2009
Revision Date: February 24, 2017 - V2.3
Reviewed: January 9, 2017 - no changes made

 

Related Memorandums, Announcements, and Revision Notes

February 24, 2017 - Version 2.3: Updated policy name reference for the Reimbursement of Travel and Other Expenses Policy. No other changes made to the policy.

January 17, 2017 - Version 2.2: Replaced the labeling convention "G1., G2., etc." in the Procedures section to "PR1., PR2., etc." No other changes made to the policy.

June 30, 2016 – Version 2.1: Removed link to a Financial Services Knowledge Base article from G.6 Links to Related Documentation. No other changes made to the policy.

September 25, 2014 - Version 2.0: Announcement from Cristiane Tinmouth, Interim Assistant Vice-Principal and Controller, Financial Services about Update to Guest Lecturer & Speaker Remuneration Policy | Channels News.

February 13, 2009 Announcement from Albert Caponi, Assistant Vice-Principal (Financial Services) and Lynne. B. Gervais, Associate Vice‐Principal (Human Resources) about ‘Guest Lecturer & Speaker Remuneration’ guidelines | PDF version