Additional & Miscellaneous Payments

Entertainment, Speakers and Cultural Events

Examples of entertainment agreements include:

  • DJs and music/bands
  • dance performance/performers
  • caricature artists and face painting
  • balloon artists

If entertainment/cultural services are needed, the will need to be filled out and can be found in the . The contract must be signed by the contractor/vendor, along with a Certificate of Insurance at the levels detailed in the contract (section 10). Any proposed changes to the entertainment contract must be reviewed and approved by the Office of General Counsel (OGC). To contact the OGC email or phone 410-704-4003.

If a vendor has their own agreement and does not want to sign the university's entertainment agreement, their agreement must be submitted to the OGC prior to entering the agreement.

Entertainment contracts are signed by the authorized department signatory detailed in the Contract Execution Policy 08-03.01 and the Active Signatory Authority Delegation list on the Office of General Counsel website.

No services can be rendered without an executed contract and Certificate of Insurance.

Payment for entertainment contracts do not require a purchase order. Once services have been rendered, a copy of the executed entertainment, speakers, cultural events contract, the invoice, and a copy of the Certificate of Insurance must be submitted to the Accounts Payable Office at . Payment terms are Net 30.

Independent Contractor (Individual) $500 and Above

鈥淐onsultant鈥� is defined as an independent contractor (a non-University employee), an established business concern, and/or individual who receives a payment for services. Consultant services generally fall within the USM definition of Services: 鈥淭he rendering of time, effort, or work rather than the furnishing of a specific physical product, other than reports incidental to the required performance. It includes, but is not limited to, the professional, personal and/or contractual services provided by architects, engineers, attorneys, accountants, physicians, consultants, appraisers, land surveyors, and where the service is associated with the provision of expertise or labor, or both.鈥�

For more information, read the  and Towson University Procurement Policy 08-03.00.

Rule of thumb

What to Keep in Mind

This process should be used if the contractor is utilizing a Social Security Number (SSN), NOT an Employer Identification Number/Taxpayer Identification Number (EIN or TIN).

In order to be classified as an independent contractor and not as a university employee, the relationship between the individual and the University must be such that the University does not have a right to direct and control the means and details of the work performed by the individual. To help determine whether or not a consultant meets the classification of an independent contractor, take the Independent Contractor Test.

Examples of eligible parties that can receive independent contractor payments for services:

  • Workshop teacher
  • Program Facilitator, leader, or instructor
  • Teaching assistant or Mentor
  • Photography
  • Videography
  • Graphic Designer
  • Freelance Writer
  • Editor

Request for Contractor Services

Requests for Independent Contractor services $500 and above must be submitted via DocuSign PRIOR to the start of services. The form can be found under the . If the total of services is under $500, a request is not necessary.

Required Documentation for Processing (Payment cannot be made until services are completed)

  1. - to determine if they are being paid by Social Security Number (SSN) or Employer Identification Number (EIN).
    • If W9 lists an EIN, payment is not an independent contractor.*
  2. OR
  3. If the request for services is over $5,000, Procurement will:
    • Request an Independent Contractor Agreement from the individual prior to the request being approved and;
    • Issue a direct Purchase Order
  4. Vendor Invoice submitted to with a copy of all signed/approved documents listed above
    • -or-
  5. with a copy of all signed/approved documents listed above.
  6. Payment terms are NET30 from the date of completion of services.

* If paying a company/EIN and the payment for services is under $5,000, request an invoice, submit invoice to or pay by Procurement card. If payment for services is over $5,000, submit a purchase requisition.

Honoraria

鈥淗onorarium鈥� is a relatively small payment to a guest speaker or other individual who has been invited to provide a unique service to the university. An honorarium is typically used to 鈥渉onor鈥� individuals who are not professional speakers or independent contractors. An honorarium may consist of a cash payment and/or travel expenses.

rule of thumb

What to Keep in Mind

An honorarium payment is provided as a token of appreciation for participation in an activity or event, and not as a contractual obligation to pay for services rendered. Honorariums are usually one-time payments made to an individual (not a corporation, business or partnership) who is not an employee of the University, for a special and non-recurring activity or event.

Examples of Eligible parties that can receive Honorariums:

  • Speaking Engagement
  • Guest Speaker/Lecturers
  • Other Creative Activity such as Writing, Judging, or participating in a panel discussion.

Determination of Honorarium Payments

  • Is the individual a business, corporation, or partnership? Recipient cannot be a business entity because honorarium payments are considered taxable income by the IRS. A business entity can be identified by the name of the payee or by the tax identification number (TIN).
  • Was the payment amount negotiated between the university and the individual?
  • Is there a contractual agreement?
  • Are the individual鈥檚 services recurring?
  • Is the individual a 快活视频employee or student employee? Or are they an employee at another university in the USM system?
  • Did the individual set the price?

If you have answered 鈥測es鈥� to any of the above questions, the payment does not qualify as an honorarium.

For more information, read 08-03.40 鈥� Honoraria Guidelines and Procedures.

Required Documentation for Processing (after the event is completed)

  1. Before issuing an invitation, the requesting department must complete the , which can be found in the .
  2. After the required approvals have been received, the requesting department must send a letter to the honoree to confirm the details of the engagement. You can find the  in the 
  4. Travel receipts, as applicable
  5. with a copy of all signed/approved documents listed above for payment to be made.
    • The MEV must include:
      • your department's cost center, followed by account 502119, honorarium
      • a copy of the fully executed letter of invitation
      • a copy of the approved Honorarium Request Application
      • travel receipts and boarding passes, as applicable
  6. Payment terms are NET30 from the date of participation.

If the visitor is not a U.S. citizen or permanent resident, the department should first contact the International Students and Scholars Office (ISSO), email  or phone 410-704-2421 and the Nonresident Alien Tax Office (NRA), email , who will ensure the university is in compliance with all Federal requirements.

Stipend

A stipend is a fixed sum of money paid periodically for services or to defray expenses. It is often distinct from a wage or a salary because it does not necessarily represent payment for work performed. Instead, it is often paid to individuals who are participating in an internship, apprenticeship, graduate work, or a fellowship, just to name a few.

Stipend for Services or Participant Stipend?

Participant Stipend

Payee is participating as a learner or trainee in an educational or research experience. The primary purpose is to benefit the participant through increased learning, knowledge or experience in the given topic area. The payment is intended to help defray expenses while participating in the program.

Examples of eligible parties that can receive Participant Stipends

  • High school students attending a summer program
  • K-12 teachers attending an in-service workshop
  • Undergraduate students participating in a research experience (such as REU)

快活视频Employees and 快活视频Students participating in a program as a learner or trainee will not receive a lump sum stipend, but are eligible for expense reimbursement such as meals, mileage, registration fees, etc.

Stipend for Services

Payee is providing a service in connection with an educational or research experience. The primary purpose is to pay for services rendered which benefit the University or its programs. The payment is intended to compensate the individual for their hours worked, expertise provided, work results, etc.

Examples of eligible parties that can receive Stipend for Services

rule of thumb

What to Keep in Mind

Recipient cannot be a business entity. Stipends or awards are considered taxable income by the IRS. A business entity can be identified by the name of the payee or by the tax identification number (TIN).

Stipends as Awards to 快活视频Students

Fellowships or Scholarships must be applied to the students鈥� account through the Financial Aid Office.

Awards and Prizes to 快活视频Students can be paid through Accounts Payable on a .

  • Examples of Prizes/Awards to 快活视频Students include:
    • Submitting work in a show/exhibition
    • Submitting essay/writing samples

Required Documentation for Processing (After the Participation or Services are completed)

  1. See Towson University Stipend Matrix for complete breakdown of how to determine a stipend payment