Policy
Individuals who are not employees of the University can be reimbursed contractually for services rendered as outside consultants, professional entertainers, etc. These types of payments are referred to as honoraria or two-party agreements.
W-4
A two-party agreement form must be completed and signed by the provider of services. It must be signed by both parties before the event, not after. The provider should be advised by the paying unit that the amount paid will be reported to the IRS on a 1099 form by January 31 of the following year. Please note that university employees cannot be paid through a two-party agreement for any extra services provided; they must be paid through existing Payroll and Office of Human Resources procedures.
For foreign speakers, the amount may be reported to the IRS on form 1042-S. See the immigration and taxation regulations concerning foreign speakers if you have questions or contact Illinois State University's non-resident alien tax specialist.
Occasionally the provider is not able to sign the contract in time for a check to be ready for payment at time of performance of services. In these cases, it is allowable to use an agreement with all items filled in except signature, with the understanding that the signature will be obtained at time of performance. The signed form is then to be sent to the appropriate division of the Comptroller's office for attachment to the invoice voucher.