An honorarium is a payment made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required. It is an ex gratia payment, meaning it is made without the giver recognizing themselves as having any liability or legal obligation. Honoraria are typically used to help cover costs for volunteers or guest speakers and may be considered taxable income. Some examples of when honoraria are used include:
- Payment to guest speakers at a conference meeting to cover their travel, accommodation, or preparation time.
- Payment to teachers and coaches in schools or sports clubs.
- Payment to individuals for one-time teaching or speaking engagements to individuals who are not employed by the University.
- Payment to individuals for services for which custom or propriety forbids a price to be set.
- Payment to ministers, musicians, organists, soloists, and others for services for Christian Church funerals and/or memorial services.
- Payment to wedding officiants.
Honoraria are not based on an agreed amount between the individual providing services and the individual seeking services, and if payment is agreed upon, this constitutes a contractual agreement. If accumulated honoraria payments are $600.00 or more during a calendar year, a 1099 is sent to the recipient. An honorarium is different from a per diem, which is a daily allowance paid to employees or consultants to cover business trip expenses, like a hotel stay, travel, and food.
