Honorarium vs. Professional Service Payment

The following will assist CFAES departments to determine if a payment to a non-University individual or company for guest speaking, presenting and/or participation an should be categorized and processed as an “honorarium” or “professional service”. 

Contact the CFAES Service Center for additional assistance and guidance.

HONORARIUM

Description

An unsolicited and arbitrary payment issued by a department to an individual (person) as a “thank you” or gesture of appreciation for participation in a University event (e.g. guest speaking, presentation, etc.). 

NO Required Fee

and/or Terms and Conditions

The individual considers the participation to be strictly voluntary (e.g. not-for-profit).  There is no communication related to a payment or fee, nor, requirement for the University to accept terms and conditions (e.g. contract).

Recipient Eligibility
  1. Honorariums may ONLY be issued to a non-University individual (person). 

 

  1. Honorariums are NOT permitted to be issued to University employees.  

 

  1. Honorariums are NOT permitted to be issued to businesses (including LLCs).

University Payment Method(s)
  1. Honorariums are most commonly paid via “Miscellaneous Payment” (MP).  A completed “Payee Setup Form” will be required if the individual is inactive in Workday.

 

  1. Honorariums, at times, are infrequently paid via “Supplier Invoice Request” (SIR).  Contact the CFAES Service Center for additional details.

IRS Taxable Reporting

Honorariums are taxable income and will be reported to the IRS by the University accordingly.  

  

PROFESSIONAL SERVICE

Description

A required fee or payment to an individual or company to be paid by a department for a professional service at a University event (e.g. guest speaking, presentation, appearance, etc.).   

Required Fee

and/or Terms and Conditions

The individual or company considers the participation at the University event as a professional (for profit or income) service.  The University may also be required to accept terms and conditions (e.g. contract).   

Recipient Eligibility
  1. Professional Service payments may be issued to a company (including LLCs).

 

  1. Professional Service payments may be issued to a non-University individual (person).

University Payment Method(s)
  1. Professional Services are most commonly paid via “Non-Catalog Requisition” (RQ).  A completed “Payee Setup Form” will be required if the individual is inactive in Workday.  Any terms and conditions or contract needing reviewed and signed must be attached to the RQ.

 

  1. Professional Services may be paid via PCard ONLY to companies.  Any terms and conditions or contract needing reviewed and signed must be submitted for Univ signature prior to the event.

 

  1. Professional Services may NOT be paid via PCard to individuals. This is strictly prohibited. Contact the CFAES Service Center for additional details.

IRS Taxable Income

Professional Services are taxable income and will be reported to the IRS by the University accordingly.