An honorarium is a one-time payment for short-term services, as outlined in this procedure, where the Institute does not expect a particular deliverable and the recipient will not invoice the Institute for services rendered.. Nonresident Alien individuals may receive honorarium payments with a J-1, B-1, or B-2 visa. Most other Visas do not permit honoraria payment.
- Honorariums are to be paid to individuals, rather than companies or organizations. Services provided by companies or organizations must be contracted.
- Honorariums are not to be paid to Georgia Tech employees including student employees.
- State law limits those State of Georgia employees who are eligible to sell their services to other State agencies on a per diem/honorarium basis. Payment is allowed only if the individual is classified in one of the following categories:
- chaplain
- fireman
- any person holding a doctoral or master's degree from an accredited college or university
- physician
- dentist
- psychologist
- registered nurse or licensed practical nurse
See documentation requirements below for when payee is State of Georgia employee.
When to Use
- An honorarium must be paid for services provided and cannot be used as a form of payment for an award.
- The service provided is one where Georgia Tech does not expect a particular deliverable.
- Examples include:
- presentation of research results
- reading of papers
- participation or leading of colloquiums, workshops, and seminars
- presentation of lectures
- The services provided must be short-term in length. Short-term is defined as 9 business days or less. Services over a longer period of time must be contracted.
Approval Responsibility
- Approval by an administrative unit indicates that payment is allowable from funding source. [If state funds, the service should be instruction, research or public service. If sponsored funds, service must be instruction, research, public service or is specifically authorized by grantor.]
- Approval by an administrative unit indicates that payment is within policy guidelines for honorariums.
Amount Limitations
- Each honorarium activity should typically not be greater than $5,000 unless a special exception has been granted by the Purchasing Department. Honorarium payments are processed as a direct expense and are not initiated through the requisition process.
- Amount of honorarium may include payment for services along with amount intended to cover travel expenses.
- Amount for services (honorarium) may be paid and expenses reimbursed with appropriate receipts and documentation. Payment of honorarium and expenses must be requested at same time.
IRS Reporting
In accordance with Internal Revenue Service regulations, payments to US tax residents, which total $600 or more in aggregate to payee, will be reported as income on a 1099-Miscellaneous Income form.
If recipient is Nonresident Alien, reporting on IRS Form 1042-S will be in accordance with guidelines outlined in separate procedures for payments to Nonresident Aliens.
Documentation Requirements
- An official announcement, invitation letter, flyer, etc. that outlines the need of the service provided must accompany the request for payment of honorarium.
- In all cases, requests must be accompanied by a Georgia Tech Vendor Profile Form completed by the recipient of the honorarium.
- If payee is Nonresident Alien, see separate procedures for restrictions and requirements may apply.
- Receipts for travel expenses if claimed as a separate expense line.
- If payee is State of Georgia employee, the following must be provided:
- certification from requesting department of the need for services and why the best interest of the State will be served by obtaining such services from a person not presently employed by the State,
- certification by department, agency, etc. employing employee that the performance of such services will not detract or have a detrimental effect on the performance of employee's full-time employment .
Procedure Guidelines Forms
Recipients of a honorarium will need to be set up as a supplier. Requests for payment of honorariums should be submitted electronically as a supplier invoice request (SIR) via the Institute’s Financial System. The appropriate spend category for honorariums is to be used.
Expense Account Classification
The appropriate expense category is also to be used for any associated travel expenses. Expenses must be reported by day and travelers must comply with Institute travel policies. Travel expenses that are not supported by receipts, or otherwise do not comply with Institute travel policies will have all expenses classified as honoraria income.