Honorarium
{{Short description|Payment made when not set or required}}
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 the recipient for their volunteered services, 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.[http://ethics.wa.gov/opinions/99_03.htm Washington State Executive Ethics Board, ethics.wa.gov, An example of the rules for payment of an honorarium] in the United States. {{Webarchive|url=https://web.archive.org/web/20070917015028/http://ethics.wa.gov/opinions/99_03.htm |date=2007-09-17 }}[http://www.cbc.ca/sports/hockey/coaches-courted-with-payment-in-minor-hockey-1.703750 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]{{Cite web |url=http://www.athrec.mcmaster.ca/clubs/forms/2006-2007/Athletic%20Sport%20Clubs%20Manual%20-%202007.pdf |title=McMaster University, mcmaster.ca, A Canadian example of the use of an honorarium. |access-date=2014-02-03 |archive-url=https://web.archive.org/web/20080529135004/http://www.athrec.mcmaster.ca/clubs/forms/2006-2007/Athletic%20Sport%20Clubs%20Manual%20-%202007.pdf |archive-date=2008-05-29 |url-status=dead }} Another example includes the payment to guest speakers at a conference meeting to cover their travel, accommodation, or preparation time. Services for funerals and/or memorial services are often paid by honorarium, as the clergy and other people such as musicians who commonly have roles at these events, out of care, do not have a set fee for services to grieving families.[https://www.caring.com/questions/gratuity-for-funeral-minister-standard-donation Caring.com, What is the standard donation for a minister who performs a memorial service?, July 13, 2016]. {{Archive url|url=https://web.archive.org/web/20160920053106/https://www.caring.com/questions/gratuity-for-funeral-minister-standard-donation|date=2016-09-20}}{{Cite web |title=Etiquette for the Surviving Family: Planning the Funeral |url=https://www.funeralwise.com/funeral-etiquette/bereaved-planning/ |access-date=2024-01-09 |website=Funeralwise}}{{Cite web |title=Funeral Honorarium - Memorial Tipping {{!}} Heart2Soul |url=http://www.heart2soul.com/funeral-honorarium |access-date=2024-01-09 |website=www.heart2soul.com}} Likewise, wedding officiants are sometimes paid through honorarium.{{Cite web |title=Honorariums for Minister |url=https://www.weddingwire.com/wedding-forums/honorariums-for-minister/0397fe5c37b893db.html |access-date=2024-01-09 |website=WeddingWire |language=en-US}}{{Cite web |title=How Much Does an Officiant Cost? |url=https://weddings.costhelper.com/wedding-officiant.html |access-date=2024-01-09 |website=CostHelper |language=en}} When required, honorariums may be termed altarages, although an altarage may be paid to a church or parish rather than a person.
Taxation
=Australia=
An example of this is the payments made by Australian schools to their sporting coaches.{{Cite web |title=Employment Contract Considerations – SWIM Coaches and Teachers Australia |url=https://scta.org.au/employment/industrial-relations/employment-contract-considerations/ |access-date=2024-01-09 |language=en-US}} 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){{Cite web |url=http://www.ato.gov.au/print.asp?doc=%2FContent%2F8729.htm |title=Australian Taxation Office, Australian tax law regarding the payment of honoraria |access-date=2020-01-16 |archive-url=https://web.archive.org/web/20040609055444/http://www.ato.gov.au/print.asp?doc=%2Fcontent%2F8729.htm |archive-date=2004-06-09 |url-status=dead }} to the tax office and therefore do not have to include this money in their annual tax return.
=Canada=
In Canada, honoraria are considered salary and thus, taxable income under the Income Tax Act.{{Cite web |url=http://www.queensu.ca/financialservices/procedures/makingpayments/payinghonorariums.html |title=Queen's University, queensu.ca How to Pay an Honorarium |access-date=2015-01-07 |archive-url=https://web.archive.org/web/20150107222222/http://www.queensu.ca/financialservices/procedures/makingpayments/payinghonorariums.html |archive-date=2015-01-07 |url-status=dead }} 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.[http://fhs.mcmaster.ca/pathology/documents/Hooker-Terms-of-Reference-April07.doc McMaster University's Faculty of Health Sciences, THE HOOKER DISTINGUISHED VISITING PROFESSOR TRUST FUND]. {{Archive url|url=https://web.archive.org/web/20160303234157/http://fhs.mcmaster.ca/pathology/documents/Hooker-Terms-of-Reference-April07.doc|date=2016-03-03}}
=Hong Kong=
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.[http://www.aud.gov.hk/pdf_e/e43ch01_summary.pdf Hong Kong Special Administrative Region, Report No. 43 of the Director of Audit][https://www.hku.hk/apptunit/faq.html University of Hong Kong , Mandatory Provident Fund]
=Indonesia=
Under Indonesian National Laws, honorarium recipients are subjected to withholding tax under Income Tax Article 21.{{Cite web |url=http://www.indonesia-ottawa.org/economy/INCOMETAX/pph01.htm |title=Embassy of Indonesia in Ottawa, ARTICLE 21 INCOME TAX |access-date=2008-04-11 |archive-url=https://web.archive.org/web/20071221110014/http://www.indonesia-ottawa.org/economy/INCOMETAX/pph01.htm |archive-date=2007-12-21 |url-status=dead }}[http://www.pajak-indonesia.com/Words/Eng/books.htm Pajak Indonesia, Konsultan Pajak, Taxation of Expatriate Employee]. {{Archive url|url=https://web.archive.org/web/20160303213600/http://www.pajak-indonesia.com/Words/Eng/books.htm|date=2016-03-03}}
=New Zealand=
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.[http://www.ird.govt.nz/payroll-employers/make-deductions/staff-benefits/special-benefits/emp-deductions-benefits-special-honoraria.html New Zealand Inland Revenue website, When to tax honoraria]. {{Archive url|url=https://web.archive.org/web/20160314004928/http://www.ird.govt.nz/payroll-employers/make-deductions/staff-benefits/special-benefits/emp-deductions-benefits-special-honoraria.html|date=2016-03-14}} 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.[http://www.ird.govt.nz/payroll-employers/make-deductions/withholding-tax/emp-deductions-salaries-wt-activities.html New Zealand Inland Revenue website, Activities subject to withholding tax]
=Sri Lanka=
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.[http://www.dailymirror.lk/article/Cabinet-State-employees-liable-for-PAYE-Tax-150649.html Cabinet: State employees liable for PAYE Tax]
=United Kingdom=
Honoraria to employees are subject to Income Tax and National Insurance contributions under PAYE.{{Cite web|url=http://www.hmrc.gov.uk/paye/exb/a-z/h/honoraria.htm |title=Honoraria and similar payments |author=HM Revenue and Customs |author-link=HM Revenue and Customs |work=PAYE for employers |access-date=26 May 2012 |url-status=dead |archive-url=https://web.archive.org/web/20130130164715/http://www.hmrc.gov.uk/PAYE/exb/a-z/h/honoraria.htm |archive-date=30 January 2013 }}{{Cite web|url=http://www.hmrc.gov.uk/manuals/nimmanual/NIM02205.htm |title=NIM02205 – Class 1 NICs: Earnings of employees and office holders: Honoraria and similar payments |author=HM Revenue and Customs |work=National Insurance Manual |access-date=26 May 2012}} However payments are made based on services required and not bound by any contractual arrangements.
The British spy agencies euphemistically call a bribe an "Honorarium" or "King George's cavalry".Tom E. Mahl,[https://books.google.com/books?id=hPpgxwnZpa4C&dq=%22King+George%E2%80%99s+cavalry%22&pg=PT185 Espionage's Most Wanted: The Top 10 Book of Malicious Moles, Blown Covers], (2003)Joseph Goulden [https://books.google.com/books?id=y9TCAgAAQBAJ&dq=%22King+George%E2%80%99s+cavalry%22&pg=PA123 The Dictionary of Espionage: Spyspeak into English], 2013.Scott Shane [https://mobile.nytimes.com/2018/02/17/sunday-review/russia-isnt-the-only-one-meddling-in-elections-we-do-it-too.html Russia Isn’t the Only One Meddling in Elections. We Do It, Too.], New York Times, Feb. 17, 2018.
=United States=
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.[http://www.fin.ucar.edu/guide/honor.html UCAR, Honorarium Payment Guidelines]
Members of the United States Congress are prohibited by law from accepting honoraria for things such as speeches or articles.{{cite web|url=https://www.senate.gov/CRSpubs/9c14ec69-c4e4-4bd8-8953-f73daa1640e4.pdf|title=Congressional Salaries and Allowances: In Brief|last=Brudnick|first=Ida A.|date=April 11, 2018|access-date=June 30, 2018|page=2}}
See also
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References
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