GOVERNING DOCUMENTS: FINANCIAL

POLICY:	PAYMENTS OF GUEST LECTURE FEES
Effective Date:	July 5, 1983
Revised Date:
Review Date:
Approving Body:	Vice-President (Research & External Programs)
Authority:
Implementation:
Contact:	Comptroller's Office
Applies to:	All Staff

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From time to time, university departments may bring in a scholar in some particular field for the purpose of giving a lecture, chairing a seminar, or performing some similar service for a period of a day or two. For such services the person is often paid a fee, the amount of which usually is not commensurate with the service performed.

Such payments are considered as fees for professional services, that is, business income earned in Canada, and as such are reported to Revenue Canada on T4A slips. Because they are not considered as employment income, they are not subject to Canada Pension Plan and Unemployment Insurance deductions, and in the case of residents of Canada, are not subject to Income Tax deductions.

Payments to residents of other countries are generally subject to an Income Tax deduction of 15% of the payment, pursuant to section 105 of the Income Tax regulations. If the gross of the payment is less than $5000.00, the payor may make special arrangements with Revenue Canada to reduce the tax deduction to nil. Such arrangements should be made by the Dean or Director who engages the non-resident, by contacting Revenue Canada well in advance of the actual visit. A copy of the engagement letter outlining the name and address of the recipient and the amount of the payment should be communicated to: Source Deductions, Revenue Canada - Taxation, 391 York Avenue, Winnipeg, Manitoba, R3C 0P5.

The authorization to reduce the tax deduction to nil is sent directly to the Payroll Manager by Revenue Canada.

Guest lecture fees are processed on Form C32-78 - Requisition for Payment of Expenses. In the case of payments to residents of Canada, it is essential that the recipient's Social Insurance Number is provided.