An honorarium is an ex gratia payment, i.e., a payment made, without the giver recognizing themself as having any liability or legal obligation, to a person for his or her services in a volunteer capacity or for services for which fees are not traditionally required. It is a common remuneration practice in schools or sports clubs, for teachers and coaches. Another example includes the payment to guest speakers at a conference meeting to cover their travel, accommodation, or preparation time. Services for Christian Church funerals and/or memorial services are often paid by honorarium, as the minister, musicians, organist, soloist and others, out of care, do not have a set fee for services to grieving families. Likewise, wedding officiants are sometimes paid through honorarium. When required, honorariums may be termed altarages, although an altarage may be paid to a church or parish rather than a person.
An example of this is the payments made by Australian schools to their sporting coaches. They are ostensibly receiving a reimbursement for their costs in their voluntary roles as coaches. The concept of an honorarium has a tax implication. In Australia, recipients of these funds make a tax declaration (known as the hobbyist form) to the tax office and therefore do not have to include this money in their annual tax return.
In Canada, honoraria are considered salary and thus, taxable income under the Income Tax Act. In the case where a gift is substituted for honorarium (gift in lieu of money), it is still classified as a taxable benefit by Canada Revenue Agency.
In cases where an honorarium is paid to an individual who is not a resident of Canada, the honorarium is still subjected to income tax withholding (usually 15%) unless prior approval was obtained from Revenue Canada.
Honoraria are subjected to taxation under HK Laws. Chap 112 Inland Revenue Ordinance and also subjected to the Mandatory Provident Fund, a compulsory saving scheme for retirement.
When honorarium is paid to an employee, such as mayors, chairpersons, and local clubs and societies, it is not subject to withholding tax but is subject to income tax. However, if the payment was not made to the above-mentioned category of people, it is subject to withholding tax rate between 33c to 48c.
In Sri Lanka, remuneration received by Government Ministers and Members of Parliament (MPs) are considered by the President as Honoraria. As such deemed by him to be not subject to PAYE as MPs have honorific before their names as such receive honorariums and not salaries from the State.
An honorarium paid to a U.S. resident for services performed within or outside the U.S. is subject to federal (and in some cases state) income tax.
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- Washington State Executive Ethics Board, ethics.wa.gov, An example of the rules for payment of an honorarium in the United States.
- cbc.ca, Sports, Coaches courted with payment in minor hockey, Gone are the days when all coaches were unpaid volunteers, By Kristina Rutherford, CBC Sports, Dec 05, 2008
- McMaster University, mcmaster.ca, A Canadian example of the use of an honorarium.
- Caring.com, What is the standard donation for a minister who performs a memorial service?, July 13, 2016
- funeralwise.com Good Etiquette Guide for the Surviving Family – Planning the Funeral
- heart2soul.com, Funeral Honorarium/Funeral Tipping, By Karen Zinn
- weddingwire.com, Honorariums for Minister
- weddings.costhelper.com, How Much Does an Officiant Cost?
- Australian Swimming Coaches & Teachers Association, An example of an Australian school paying a coaching honorarium.
- Australian Taxation Office, Australian tax law regarding the payment of honoraria
- Queen's University, queensu.ca How to Pay an Honorarium
- McMaster University's Faculty of Health Sciences, THE HOOKER DISTINGUISHED VISITING PROFESSOR TRUST FUND
- Hong Kong Special Administrative Region, Report No. 43 of the Director of Audit
- University of Hong Kong , Mandatory Provident Fund
- Embassy of Indonesia in Ottawa, ARTICLE 21 INCOME TAX
- Pajak Indonesia, Konsultan Pajak, Taxation of Expatriate Employee
- New Zealand Inland Revenue website, When to tax honoraria
- New Zealand Inland Revenue website, Activities subject to withholding tax
- Cabinet: State employees liable for PAYE Tax
- HM Revenue and Customs. "Honoraria and similar payments". PAYE for employers. Archived from the original on 30 January 2013. Retrieved 26 May 2012.
- HM Revenue and Customs. "NIM02205 – Class 1 NICs: Earnings of employees and office holders: Honoraria and similar payments". National Insurance Manual. Retrieved 26 May 2012.
- Tom E. Mahl,Espionage's Most Wanted: The Top 10 Book of Malicious Moles, Blown Covers, (2003)
- Joseph Goulden The Dictionary of Espionage: Spyspeak into English, 2013.
- Scott Shane Russia Isn’t the Only One Meddling in Elections. We Do It, Too., New York Times, Feb. 17, 2018.
- UCAR, Honorarium Payment Guidelines
- Brudnick, Ida A. (April 11, 2018). "Congressional Salaries and Allowances: In Brief" (PDF). p. 2. Retrieved June 30, 2018.