Guidelines for Honoraria Usage
The purpose of this guideline is to provide a framework for consistent and fair treatment when providing a nominal payment to an individual who has been invited to provide a unique service to the College. The individual must be a volunteer and have the right to turn down the offer to participate.
Definition: Honorarium is defined as a thank you gesture of nominal value for voluntary services.
An honorarium is typically a payment made on a special or non-routine basis to an individual to recognize or acknowledge the contribution of gratuitous services to the College. It is a token of appreciation with a nominal value (see CRA Perspective below) assigned to it and is not equivalent to a professional fee.
Examples of Honoraria:
A nominal payment to a guest speaker or lecturer as a “thank you” as a gesture of good will and appreciation:
An honorarium is not based on an agreed amount between the individual providing services and the person seeking services.
The honorarium must not be based on a unit of measure such as hours volunteered or number of students assisted. It must be a flat nominal amount and must not appear as compensation for work performed.
If payment is agreed upon, this constitutes a contractual business service agreement and will involve invoicing and related business taxes or will be other employment income if performed by an employee.
The agreement to be a volunteer should be in writing prior to the service being performed with no reference or mention of payment. If expenses are to be incurred the agreement must discuss method of reimbursement as a separate item (expense reimbursement with receipts or invoice).
2. Officially from a CRA perspective any services provided either one time or cumulative over a calendar year with payment >$500 are considered as Business income or Salary income.
The College faces CRA fines and penalties if the honorarium is not properly included as either business income or salary income with the appropriate deductions.
To process an Honorarium gift
The Honorarium Form and Volunteer Form can be found on myOkanagan > Employee tab > OC Express - Forms > Finance
Updated March 13, 2015