If this is not a frequent vendor/collaborator, please direct your request to UMB Accounts Receivable and the globalhub@umaryland.edu. Our Finance team will be able to collaborate with the appropriate internal partners within UMB to ensure payment is received.

If this is a frequent vendor/collaborator, we recommend you maintain and track the credit with the international organization.

Does UMB/MGIC already have an engagement with this person or entity outside the US?

If yes, the UMB department or administrative unit with the engagement must process the payment.

If no, reach out to globalhub@umaryland.edu to discuss the use of the MGIC mechanism.

Whenever possible:

• Payments should be made to an entity, rather than an individual.
• Payments should not be made in cash to persons or entities outside the US, especially when the financial consideration exceeds US$200 or the equivalent in foreign currency. See the next question below on honorarium payments for guidance.

For international consultants, see "How do I hire an international consultant" below the honorarium payment FAQ.

Yes, MGIC could be used to pay for teaching activities as long as the payment is to an (international) non-US bank account.

In order to get the payment processed, it’s important to know if the person is providing these services outside of the US or inside the US because the tax treatment would be different in each case. In addition, it will be essential to confirm if he/she is a foreign national for tax purposes or if he/she is a US citizen or resident alien.

For any payment through MGIC, the following three documents are required to be submitted through a ticket to globalhub@umaryland.edu:

1. Copy of the Agreement or any other contract document for the services between UMB and the recipient along with a confirmation from the School/Department that services were provided at specified cost.  
2. Payee Bank Details Verification Form completed and signed by the recipient.
3. Payment Authorization Form signed by the department/School representative authorized to commit the funds.

In addition to these three required documents, an additional document will be required for tax purposes which depends on the questions asked above:

1. If the person is a foreign national and is providing services to UMB entirely outside of the United States, he/she should complete a Foreign Source Statement - MGIC (FSS), there is no tax withholding required in this case.
2. If the person is a foreign national and is providing services to UMB in the United States (for example, as a visiting lecturer coming to Baltimore), he/she must complete a W-8BEN Form (non - US citizen) Form. The payment will be subject to a 30% flat rate that MGIC must withhold and submit to the IRS unless he/she is a Citizen of a country that has a tax treaty with the US.
3. If the person is a US citizen or resident alien, he should provide a W-9 Tax Form regardless of where is he/she performing the services to UMB. In this case, the payment is not subject to any withholdings.

Special note:  US tax rules and requirements are complex.  The International Operations department cannot provide tax advice or guidance.  Recipients should consult a tax professional to determine their residency status for US tax purposes and to understand their obligations under US and foreign tax laws.

Yes. If the honorarium recipient is a non-US resident (per US tax regulations) and the honorarium needs to be wired to the recipient’s bank account outside the United States, the payment can be made through MGIC. Please note, that a $40 transaction fee will be charged by MGIC to the Department/School requesting the payment.  To make this payment through MGIC, please contact the International Operations department at globalhub@umaryland.edu and provide:

1. Support Letter or equivalent document from your department/School to the recipient, describing the purpose and amount of the honorarium.
2. Payment Authorization Form signed by the department/School representative authorized to commit the funds.
3. Payee Bank Details Verification Form completed and signed by the recipient.
4. Appropriate tax declaration:
   • If the honorarium is being paid for services performed inside the United States, the recipient must provide a W-8BEN Form (non - US citizen) (individuals) or a Form W-8BEN-E (businesses). 
   • If the honorarium is being paid for services performed entirely outside the United States, the recipient must provide a Foreign Source Statement - MGIC(FSS) 

Please contact us at globalhub@maryland.edu with any questions about the above forms or the MGIC payment process for international wire transfers to non-resident honorarium recipients.

The above guidance applies to honorarium payments made outside the United States. If, on the other hand, the honorarium needs to be paid in the U.S., (for example, to a foreign national who is in the U.S. on a visa and who needs to receive the funds in the U.S.) the payment must be processed through UMB Payroll instead of MGIC. UMB will request much of the same information described above, and other information, through its online GLACIER system, and the honorarium will be paid directly by the State of Maryland with a paper check (not a wire transfer) to the honorarium recipient.  Please contact Candace Chow (cchow@umaryland.edu) or Shanay Smith (Shanay.smith@umaryland.edu) in UMB’s Office of the Controller for assistance paying an honorarium to a foreign national in the U.S.

Finally, please be advised that regardless of which way the foreign national is paid, an honorarium for services performed inside the U.S. will be subject to a U.S. income tax withholding of 30% in most cases. Some exceptions apply. The Global Hub can guide you to applicable IRS regulations but cannot provide tax advice.

The following guidance is for hiring a consultant or consulting firm based outside the US to perform a scope of work outside the US.

Have you clearly defined the scope of work? If not, please do so prior to contacting SSAS or International Operations.

Once you have a clearly defined scope of work, submit your international procurement requisition to SSAS following the usual procedure. For information on what happens after that, see the Procurement FAQ below "Can I ask MGIC to handle my international procurement needs?"

Have you already identified an individual or consulting firm to serve as the consultant? Keep in mind that UMB requires a competitive procurement or sole-source justification for contracts with a value of US$25,000 and above, and MGIC requires a competitive procurement or sole-source justification for contracts with a value of US$3,500 and above.

• Go to SSAS general procurement forms to locate the Single/Sole Source Justification Form for UMB procurements.
• Sole-Source Justification Form for MGIC procurements.

Due to state law, this can only be done by and through the Maryland Global Initiatives Corporation (MGIC), a nonprofit affiliate of UMB formed to support the implementation of UMB's international programs.

Contact us at globalhub@umaryland.edu for assistance.