Quick Guide

Quick guide: Establishing Payment Practices with Indigenous Communities

Developed in collaboration with Office of Indigenous Relations (OIR), Finance, Human Resources (HR), the Office of the Vice-President, Research (OVPR), and informed by our Project Advisory Group and peer institutions, this guide aims to create a respectful, supportive experience for Indigenous Community Members by reducing barriers and ensuring timely, accessible, culturally appropriate payments. In addition to improving payment practices, this initiative supports the University's commitment to Indigenous procurement by reducing barriers to engagement and increasing opportunities for Indigenous Individuals and Suppliers.  

The University recognizes that respectful engagement includes considering the preferences, circumstances, and cultural practices of Indigenous Individuals and Communities when determining how remuneration is provided. 

Plan early! 

  • Begin planning as early as possible to support a smooth, respectful, and timely engagement.  

  • Discuss expectations, compensation, payment preferences, and timelines with the Indigenous Individual or Supplier early in the process.  

  • Confirm whether the Indigenous Individual or Supplier has already completed the Indigenous verification process through the Office of Indigenous Relations. If verification is required, allow up to two weeks for completion.  

  • Allow sufficient time for any required onboarding, payment setup, approvals, or employment classification assessments.  

  • Where an Indigenous Individual or Supplier has limited access to technology, the UW Representatives should assist with completing required forms and processes wherever possible to reduce administrative burden. 

Roles and responsibilities 

  • UW Faculty and Staff (UW Representatives): Serve as the primary liaison between the University and Indigenous Individuals, Communities, and Suppliers. Responsible for planning engagements, supporting payment and onboarding processes, reducing administrative barriers where possible, and ensuring interactions are conducted with respect, transparency, and cultural awareness. 

  • (Faculty) Financial Officers and Administrators: Provide local support and work in partnership with OIR, OVPR, HR, and Finance to help UW Representatives navigate payment processes and requirements. 

  • Office of Indigenous Relations (OIR): Verifies Indigenous Individuals and Indigenous Suppliers and provides guidance on culturally responsive engagement practices. 

  • Office of the Vice-President, Research (OVPR): Provides guidance on research-related engagements, participant payments, and sponsor requirements. 

  • Human Resources: Provides guidance on employment relationships, payroll processes, and situations where review of the nature of an engagement may be required. 

  •  Finance: 

    • Procurement: Oversees Supplier onboarding, Supplier records, Supplier classification, Supplier management processes, and collaborates with Human Resources when questions arise regarding the nature of an engagement. 

    • Payments & Expense: Oversees payment processing and disbursement methods. 

Determine the nature of the engagement

Gift vs. Payments for Goods or Services Gifts are not typically taxable, while payment made in exchange for goods and/or services is generally subject to applicable tax laws and CRA reporting requirements. 

Gift: A voluntary transfer of money, property, or a culturally appropriate token of appreciation provided freely with no expectation of work, goods, services, participation, or other return. Gifts are not typically considered income to the Recipient. 

Payments for Goods or Services: Money or other considerations provided in exchange for goods, services, participation, or contributions. Generally considered income under CRA rules. 

  • Goods (Tangible Property): Payments received in exchange for physical goods or other property are generally considered business income and must be accompanied by an invoice. 

  • Services: Payment in exchange for a service provided is generally considered business or employment income under CRA rules. Determining the nature of the engagement is important as it influences how payments are processed and whether payroll deductions, reporting requirements, or additional review may apply. 

  • Honorariums (≤$500/year): Small, symbolic payments that are not reflective of the fair market value of the services provided. These may be treated as income depending on the circumstances and should be processed in accordance with Human Resources procedures. Follow the Honorarium process. 

Reimbursements: Travel for guests/visitors should be booked through the University’s preferred travel service provider, where ever possible. Other guest/visitor related travel expenses may be reimbursed through the Electronic Expense Claim Form. To minimize administrative burden, the UW Rep should complete any forms and documentation on behalf of the Indigenous Individual wherever possible, in collaboration with the Individual. Submit completed forms to apinvoices@uwaterloo.ca. Reimbursement of expenses paid by the Indigenous Individual are not taxable to the Recipient.  

The nature of the engagement, rather than the title used to describe the payment, determines how a payment must be processed. When in doubt, consult your (Faculty) Financial Officer, Human Resources, Procurement, or the Office of Indigenous Relations. 

Payment pathways:

Indigenous Businesses and Suppliers  

Indigenous Supplier: A business that has completed the University's Indigenous verification process through the Office of Indigenous Relations and has been designated as a verified Indigenous Supplier. Verified Indigenous Suppliers may be eligible for expedited payment terms. Examples may include: Food, catering, or clothing/textiles from Indigenous Businesses/Suppliers, etc. 

Indigenous Business/Suppliers
New Business/Supplier  UW Rep submits the New Supplier Request Form in WatProcure and an invite is emailed to the Supplier. Supplier completes registration and Indigenous verification requirements. Procurement and OIR review the submission. If approved, the UW Representative finalizes the booking/agreement and submits the invoice for payment via the Indigenous Payment Request form in WatProcure. 
Existing Business/Supplier  For Indigenous Suppliers already registered in WatProcure, UW Rep submit invoice via the Indigenous Payment Request form in WatProcure. Unsure if a business is registered in WatProcure? See Supplier Search.  
Payment methods  Electronic Fund Transfer (EFT) (ten business days or less from expense approval) for verified Indigenous Suppliers; Cheque (2-3 weeks from expense approval – sent via mail); or ACH/Wire (foreign currency only) 

Indigenous Individuals

Indigenous Individual: An individual who has completed the University's Indigenous verification process through the Office of Indigenous Relations and has been designated as a verified Indigenous Individual. Examples: Paying on-site Community facilitators, leading ceremonies/conducting workshops, translation services. 

1 UW Rep. completes the Indigenous Verification Request form on behalf of the Indigenous Individual. 
Note: Prior to finalizing an engagement, the University may need to review the nature of the engagement to determine the appropriate onboarding and payment process. This review helps ensure payments are processed in accordance with University requirements and CRA rules. 
2A Payments to Indigenous Individuals who are not in an employment relationship with the University of Waterloo. This section generally applies where an invoice is provided, or where annual cumulative payments to an Indigenous Individual are expected to be $500 CAD or less. Ex: Translation or interpretation services, cultural advising or consultation, community facilitators supporting events or engagements, leading ceremonies, territorial welcomes, or opening prayers, sharing traditional knowledge and teachings, workshops, presentations, or community engagement activities, cultural performances. 
 

Invoice: UW Rep submits invoice via Indigenous Payment Request form in WatProcure after the Supplier is registered.  

Payment methods: Electronic Fund Transfer (ten business days or less from expense approval); Cheque (2-3 weeks from expense approval – sent via mail); or ACH/Wire (foreign currency only) 
 

No invoice and payment is > $500: The nature of the engagement should be reviewed to determine the appropriate payment pathway. In most situations, payment will be processed through one-time payment request in Workday.  

Payment methods: EFT/ACH, Wire, Cheque
 

No invoice and annual cumulative payments are expected to be ≤$500: UW Rep submits via Concur.  

Notes:  

  • A Cash Advance is available for any requests over $250 CAD.  

  • If it can be reasonably anticipated that the sum of all payments to an Individual will >$500 CAD within a calendar year, do not use Concur. Submit via one-time payment request in Workday instead. 

Payment methods: tangible items, gift cards, e-transfer, or cash, depending on the circumstances, University requirements, and the preferences of the Indigenous Individual. 

  • Tangible items and gift cards may be purchased via Departmental P-Card or reimbursed.  

  • Requests for e-transfers or cash may be facilitated via Concur cash advance or paid out of pocket and subsequently reimbursed. 
  1 UW Rep prepares the Acknowledgement of Receipt of Remuneration ≤$500 CAD and Self Declaration of Income Form for each Recipient. 
  2 UW Rep provides the agreed-upon remuneration, gift, gift card, e-transfer, or cash to the Recipient. 
  3 Recipient signs the Acknowledgement of Receipt ≤$500 CAD and Self Declaration of Income Form acknowledging they have received the remuneration and that UW will not be issuing a T4A tax slip. Note: Where it is inappropriate to request a signature from the Individual, the UW representative may sign on the Individual’s behalf, witnessed by another. It is the Individual’s responsibility to report income to the CRA, as applicable. 
  4 UW Rep settles cash advance and submits expenses for reimbursement, or submits P-Card report in Concur, coding expenses to the “Indigenous Cultural Knowledge Work” expense type 
2B Payments to Indigenous Individuals who are considered to be in an employment relationship with the University of Waterloo. Ex: One-time payments exceeding $500 where no invoice is provided, payments to current UW employees, casual or temporary employment arrangements, other situations where Human Resources advises that payment should be processed through Payroll based on the nature of the engagement.
 

UW Rep enters a one-time payment request in Workday.  

Note: Indigenous Individuals may qualify for certain income tax exemptions. If applicable, submit a TD1-IN form to Payroll. Regardless of exemption status, CRA requires UW to issue a T4A for cumulative payments >$500 made within the calendar year. The TD1-IN form determines whether income is reported as taxable vs tax-exempt income on the T4A. 

Note: CRA requires that we make a reasonable effort to collect relevant information in order to issue T4A’s for income tax purposes. If the Individual does not have a SIN or declines to provide it, or where requesting a SIN or other personal information is not appropriate, please make a note of this. Workday allows for this step to be skipped in the setup process, however, CRA requires that we attempt to collect this information. 

Payment methods: EFT/ACH, Wire (foreign currency only), Cheque 

Recommended minimum payments 

The following are recommended minimum payments for services provided by Indigenous Community Members. Rates should be adjusted based on the context. 

  • Opening/Closing remarks: $200–$250 CAD 

  • Workshops, ceremonies, teachings: $300–$500 CAD (half day), $600–$800 (full day) 

  • Translation: $125 CAD/hour 

  • Cultural performance and entertainment: To be determined on a case-by-case basis. 

Payment methods 

Whenever possible, the payment method should be determined in consultation with the Indigenous Individual or Supplier to ensure the approach is appropriate, respectful, and practical for their circumstances. 

Payment Method  Typical Use 
Electronic Funds Transfer (EFT)  Preferred payment method for payments in Canadian dollars. Verified Indigenous Businesses and Individuals who are Enabled for Procurement in WatProcure and select EFT are eligible for preferred payment terms (10 business days) and expedited processing. 
ACH/Wire  Available for payments issued in currencies other than Canadian dollars, or where circumstances require international payment. 
Cheque  Available where EFT, ACH, or Wire payment is not feasible or preferred. Please note that cheque processing and delivery may require additional time (approx. 2-3 weeks after approved). 
Gift Card  Where appropriate, gift cards may be used for eligible payments of $500 or less to an Indigenous Individual, in accordance with University procedures and the preferences of the recipient. 
Tangible items inc. gift or tokens of appreciation 

In some circumstances, a tangible item may be provided as a culturally appropriate gift, or token of appreciation where no goods or services are being exchanged.  

 

Tangible items may also be provided as remuneration for eligible payments of $500 or less, in accordance with University procedures and the preferences of the recipient. 
Cash or E-transfer  Where appropriate, cash or e-transfer may be used for eligible payments of $500 or less to an Indigenous Individual. Requests for cash are facilitated through the Concur cash advance process and provided by the UW Representative in accordance with University procedures. 
payment-diagram.pdf