Honoraria is a token of appreciation given to program participants (including photographers, musicians, MCs, speakers, etc.) for their unique contribution to an event. It's usually linked to a specific event rather than being a recurring payment over time. Both 501c3 organizations and individuals can receive honoraria. Honoraria is not payment for a service and thus should not be based on market rates. Payments for services at market rates should follow the contractor or employee process. 

Required Documentation:

• Description of the recipient's contribution to the event.

• Payee W-9. Electronic versions of W-9s can be found here.

• Approval from the Department Chief or Project Advisor. They will receive an email to approve the honoraria after the request is submitted via the AP Form.

• Event Documentation like a flyer or screenshot of a Facebook or Instagram post.

Things to Know:

• Time: Allow time after form submission for processing, approval, and signatures (if required). Once these steps are completed, the payment will follow the AP timeline. Payees should be informed of any action they need to take to prevent delays in payment. 

• Payment: Payments are processed through Bill.com and are paid on the date of the event or based on the AP Payment Timeline. The payee will receive an email from Bill.com to process the payment. 

• W-9: Any non-employee compensation is taxable per IRS guideline. To comply with IRS guidelines, MSC requires all recipients of any payment over the amount of $1,500 to fill out a W-9. Electronic versions of W-9s can be found here.

• 1099: MSC will issue a 1099 to individuals who receive $2,000 or more in compensation in any calendar year. 1099s are issued by January 31st of each year for the preceding year’s payment. 

Honoraria Checklist 

Before you submit your request for honoraria payment, review the checklist below to ensure you have all the information you need.