The University uses honoraria to reward individuals for one-time services where no expectation exists for payment.
- For any services where a price is negotiated with the service provider, Honoraria may not be used.
- In accordance with IRS regulations, an honorarium is reportable as income to the individual. As a result, the individual’s social security number or tax ID number is required.
- An honorarium should not include payment for travel related or other expenses.
- Honoraria are after the fact transactions and cannot be paid to the individual before the event.
- The honorarium payment and amount are both discretionary. The amount of an honorarium should not be geared to lost fees or wages, expenses, or other opportunity costs incurred by the individual, but to the amount of recognition appropriate for the service provided.
If you use the honorarium process, then you have no contractual recourse or threat of contractual recourse against the individual. This means that if you schedule an event and the individual cancels the day before the event, then you have no recourse or threat of recourse against the individual for real damages.
If your goal is to develop an arrangement with clear obligations and responsibilities then a professional/personal service contract should be used.
- Honorarium Form - Please complete and attach to the Check Request form in MaineStreet Marketplace - you will need to have the payee set up as a vendor first and have them submit a W9 if they are not in MaineStreet
- Foreign National Information Form - If the individual is a foreign national or a non-resident alien, in addition to the forms listed above, he or she must complete the Foreign National Information Form.
- The individual must have a social security number OR a taxpayer identification number
- IRS Form 8233 - If the individual is a citizen of one of the countries listed on the Tax Treaty list please complete this IRS form