What is an Honorarium
An honorarium is a one-time payment granted in recognition of a special service or distinguished achievement for which custom or propriety forbids any fixed business price to be set.
- The amount of the honorarium should be specified in an agreement or in correspondence with the individual who will receive the honorarium.
- A copy of the correspondence should accompany any request for payment.
- Honorarium payments are generally not allowable charges to federal funds unless a contract or grant specifically authorizes such payments.
- State funds may not be used for honoraria payments.
Who Can be Paid and Who Can Receive an Honorarium
Generally, honoraria are paid to persons of scholarly or professional standing in conjunction with an academic activity at UCI.
Full-time UCI academic appointees are not normally eligible to receive additional compensation for activities related to their recognized University duties, except that in certain cases members of the UCI faculty may receive honoraria for lectures and similar services at campuses other than their own. Faculty may also receive honoraria for creative work and University-sponsored conferences at any University of California campus (see APM 666). However, UCI faculty members that are members of the Senior Management Group are not eligible to receive honoraria from any UC program (see Regents Policy 7701 - SMG Salary and Appointment and 7707 - SMG Outside Professional Activities).
No designated employee shall accept any honorarium from any source if the employee would be required to report the receipt of income or gifts from that source on their statement of economic interests.
Examples: What is Considered an Honorarium
Payment to UC Faculty for:
Giving a special lecture or a short series of such lectures for a campus other than the faculty member's home campus.
Participating in a campus sponsored program review for a campus other than the faculty member's home campus.
A concert or other creative work on any UC campus.
Payment to Non-UC Faculty for:
Conducting a seminar or a workshop of no more than two-week's duration. A musical demonstration related to Music Department instruction. Speaking at a commencement exercise or other similar function. Appraising an article to be submitted to a professional publication. Presentation by Continuation Education of the Bar (CEB) author or lecturer.
Examples: What is NOT Considered an Honorarium
Performance fee payments to individuals or groups for professional services not directly related to academic functions.
Payments to independent consultants providing primarily professional or technical advice to the University in an independent contractor relationship.
Payments to faculty consultants who hold a faculty appointment and who provide specialized professional or technical advice to a campus extramurally supported project or to an activity supported from University funds.
Additional compensation for Summer Session Teaching, University Extension Teaching, University Extension Correspondence courses or Extramurally Funded Research.
How to Submit an Honorarium
An Intercampus One-Time Payment Form (UC-AP-71) is used and payment is transacted using the Online Payroll Time Reporting System. Such payments are subject to withholding for income and employment taxes and are reported on the employee's Form W-2. All requests must be approved by the campus Office of Academic Personnel to ensure compliance with APM 666.
All Non-UC Faculty
A Disbursement Voucher (reason code: E) is used to pay honoraria. All relevant documentation should be attached to the request for payment. California residency status and Social Security Number (or Individual Taxpayer Identification Number) must be shown in the spaces provided.
Foreigners Providing Services Within the U.S.
Foreign nationals are subject to federal tax withholding and reporting, and must have a visa classification that permits honorarium payment.
The foreign national's tax status information (Glacier Tax Summary Report) will be sent to the Glacier Lead Administrator, Tax Compliance and Reporting, by the foreign nationals when the GLACIER tax packet is completed. For questions, call 949 824-3647.
NOTE: A Non-Resident State Tax of 7%, and/or a Non-Resident Federal Tax of 30% will be assessed on honorarium payments that exceed $1,500.
As a best practice for agreements, please include the following verbiage to inform the payee that their payment may be subject to tax withholding:
- Tax Withholding Statement
- Honorariums and other service payments may be subject to income tax withholding under federal and State law. UCI’s central accounting office will automatically deduct taxes from your payment if it is required by IRS or California Franchise Tax Board guidelines. As a result, the net payment you receive may be lower than the pre-tax amount listed in this agreement.
Authority to Approve Honoraria
Vice Chancellors, Deans, and Chief Executive Officer, UC Irvine Medical Center, are delegated the authority to approve payment of honoraria up to $5,000 for non-UC faculty.
For payments to UC faculty, the Executive Vice Chancellor will approve payments after review by Academic Personnel. Payments are limited to $1,000 per event for one or more days and exceptions up to $2,000 per event.
The Executive Vice Chancellor and Associate Executive Vice Chancellor are delegated the authority to approve payment of honoraria up to $10,000. The Chancellor approves honoraria over $10,000.
Contacts & Related Policies
Accounting Office - Accounts Payable
POLICIES & PROCEDURES
Academic Personnel Manual
Section 666, Additional Compensation, Lectures and Similar Services
D-371-35, Disbursements: Honorarium Payments
UCI Administrative Policies & Procedures
Section 700-09, Policies on Gifts, Gratuities and Conflict of Interest
Section 701-06, Processing and Distribution of Checks
Section 707-12, Guidelines for Securing Services of Independent Contractors
Section 712-10, Guidelines for Securing the Services of Independent Consultants
Section 712-12, Guidelines for Performance Agreements