Honorarium

What is considered a honorarium?

The term is sometimes inappropriately used by faculty and staff as it relates to the payment of a professional for services rendered as a guest speaker, performer, contest judge, visiting professor, etc. Webster's definition of "honorarium" is "a payment as to a professional person for services on which no fee is set or legally obtainable". In other words, the professional person does not discuss or expect any material or monetary compensation for his or her time and there is no verbal or written contract expressing payment for the services to be received by the University. A " honorarium" is allowed to be paid strictly as a goodwill gesture to cover only transportation and lodging expenses the invited professional person may have to incur in response to an invitation to speak, judge or act in some other honorary capacity.  The tax implications of reimbursements are determined by the Office of Administrative Services.

A " honorarium" amount shall be a reasonable estimate of the anticipated expenses to be incurred by the invited professional. Honorarium should be charged to expense code 750170 (Honorarium).  If the payment is for a service, it should be charged to 750180 (Professional Services).  Be aware that certain Visas have conditions that must be met for payment to be made.

If Transportation and Lodging is offered, the reimbursement should be processed in Chrome River.  If a flat amount whether it is a Honorarium or “Fee for Service” Contract over $2000 is paid, the state requires a Professional Services contract to be executed and the social security number or FEIN of the individual to receive the honorarium will be required for payment to any individual.

If the individual is a non-US citizen with or without a social security number, then there is an additional review needed to investigate whether the non-US citizen will require taxes to be deducted from the honorarium, or qualify with the government to receive a honorarium.