What is an Honorarium?

Honorarium (excerpt from Check Request Policy)

Honoraria are processed as Check Requests. The following guidelines apply to honoraria payments:

Definition: An honorarium is a payment for services for which custom or propriety forbids a price to be set.

This method of payment is usually made to a guest speaker or lecturer as a "thank you" and gesture of good will and appreciation. An honorarium is not based on an agreed amount between the individual providing services and the individual seeking services. If payment is agreed upon, this constitutes a contractual agreement.

• Honoraria are payments for one-time teaching or speaking engagements to individuals who are not employed by the University; and, honoraria payments have no time/date stipulations, thus normal payment terms apply = Net 30 days.

• Honoraria represent taxable income to the recipient. If accumulated honoraria payments are $600.00 or more during a calendar year, a 1099 is sent to the recipient and the IRS.

• All payments require a social security number.

• Honoraria should not be recurring to the same individual.

• Honoraria should not be confused with payments to employees or payments to independent contractors (Note: Again, where an amount has been agreed upon by the individual providing service and the individual seeking service, the payment is NOT an honorarium, and a contract is required.)

The IRS has established "The 20 Factors" guidelines that should be considered when determining how an employee should be classified (this document is available on our Accounts Payable web page -- http://www.savannahstate.edu/fiscal-affairs/acct-payable.shtml. Questions should be directed to the Office of the Comptroller.

For the complete "Check Requests Policy", visit our Policies and Procedures page.