Honorarium
Anhonorariumis anex gratiapayment, i.e., apaymentmade, without the giver recognizing themself as having anyliabilityorlegal obligationto the recipient for theirvolunteeredservices, or for services for which fees are not traditionally required. It is a common remuneration practice inschoolsorsports clubs,for teachers and coaches.[1][2][3]Another example includes the payment toguest speakersat a conferencemeetingto cover their travel, accommodation, or preparation time. Services forChristian Churchfuneralsand/ormemorial servicesare often paid by honorarium, as theminister,musicians,organist,soloistand others, out of care, do not have a set fee for services to grieving families.[4][5][6]Likewise,weddingofficiants are sometimes paid through honorarium.[7][8]When required, honorariums may be termedaltarages,although an altarage may be paid to a church or parish rather than a person.
Taxation[edit]
Australia[edit]
An example of this is the payments made byAustralianschools to their sporting coaches.[9]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)[10]to the tax office and therefore do not have to include this money in their annualtax return.
Canada[edit]
In Canada, honoraria are considered salary and thus, taxable income under theIncome Tax Act.[11]In the case where a gift is substituted for honorarium (gift in lieu of money), it is still classified as a taxable benefit byCanada Revenue Agency.[11]
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.[12]
Hong Kong[edit]
Honoraria are subjected to taxation under HK Laws. Chap 112Inland Revenue Ordinanceand also subjected to theMandatory Provident Fund,a compulsory saving scheme for retirement.[13][14]
Indonesia[edit]
Under Indonesian National Laws, honorarium recipients are subjected to withholding tax under Income Tax Article 21.[15][16]
New Zealand[edit]
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.[17]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.[18]
Sri Lanka[edit]
In Sri Lanka,remuneration receivedbyGovernment MinistersandMembers of Parliament(MPs) are considered by thePresidentas Honoraria. As such deemed by him to be not subject toPAYEas MPs havehonorificbefore their names as such receive honorariums and not salaries from the State.[19]
United Kingdom[edit]
Honoraria to employees are subject to Income Tax andNational Insurancecontributions underPAYE.[20][21]However payments are made based on services required and not bound by any contractual arrangements.
The British spy agencies euphemistically call abribean "Honorarium" or "King George's cavalry".[22][23][24]
United States[edit]
An honorarium paid to a U.S. resident for services performed within or outside the U.S. is subject tofederal (and in some cases state) income tax.[25]
Members of the United States Congress are prohibited by law from accepting honoraria for things such as speeches or articles.[26]
See also[edit]
References[edit]
- ^Washington State Executive Ethics Board, ethics.wa.gov, An example of the rules for payment of an honorariumin theUnited States.Archived2007-09-17 at theWayback Machine
- ^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"(PDF).Archived fromthe original(PDF)on 2008-05-29.Retrieved2014-02-03.
- ^Caring, What is the standard donation for a minister who performs a memorial service?, July 13, 2016.Archived2016-09-20 at theWayback Machine
- ^"Etiquette for the Surviving Family: Planning the Funeral".Funeralwise.Retrieved2024-01-09.
- ^"Funeral Honorarium - Memorial Tipping | Heart2Soul".heart2soul.Retrieved2024-01-09.
- ^"Honorariums for Minister".WeddingWire.Retrieved2024-01-09.
- ^"How Much Does an Officiant Cost?".CostHelper.Retrieved2024-01-09.
- ^"Employment Contract Considerations – SWIM Coaches and Teachers Australia".Retrieved2024-01-09.
- ^"Australian Taxation Office, Australian tax law regarding the payment of honoraria".Archived fromthe originalon 2004-06-09.Retrieved2020-01-16.
- ^ab"Queen's University, queensu.ca How to Pay an Honorarium".Archived fromthe originalon 2015-01-07.Retrieved2015-01-07.
- ^McMaster University's Faculty of Health Sciences, THE HOOKER DISTINGUISHED VISITING PROFESSOR TRUST FUND.Archived2016-03-03 at theWayback Machine
- ^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".Archived fromthe originalon 2007-12-21.Retrieved2008-04-11.
- ^Pajak Indonesia, Konsultan Pajak, Taxation of Expatriate Employee.Archived2016-03-03 at theWayback Machine
- ^New Zealand Inland Revenue website, When to tax honoraria.Archived2016-03-14 at theWayback Machine
- ^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 fromthe originalon 30 January 2013.Retrieved26 May2012.
- ^HM Revenue and Customs."NIM02205 – Class 1 NICs: Earnings of employees and office holders: Honoraria and similar payments".National Insurance Manual.Retrieved26 May2012.
- ^Tom E. Mahl,Espionage's Most Wanted: The Top 10 Book of Malicious Moles, Blown Covers,(2003)
- ^Joseph GouldenThe Dictionary of Espionage: Spyspeak into English,2013.
- ^Scott ShaneRussia 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.RetrievedJune 30,2018.
