Honorarium Payments

An honorarium payment is a payment of nominal value given to acknowledge services provided to McMaster on a voluntary basis by an individual who is not an employee of the University or an Independent Contractor.  The value of an honorarium payment is not reflective of the value of the services provided.  An honorarium payment is appropriate when the individual who has provided the voluntary services has no prior expectation of receiving any compensation for such services.  An example of an honorarium payment would be when an individual volunteers as part of a research study and receives $50 as a thank you afterwards.

Honorarium payments to an individual will not normally exceed $500.   Honorarium payments are to be classified as T4A or T4A-NR income and should be processed through a non-PO voucher in PeopleSoft.  Normally, honorarium payment recipients will need to be set up as a withholding supplier in PeopleSoft.

It is important to determine the nature of the relationship between the individual and the University prior to the provision of any services to avoid the potential violation of University policy, collective agreements, employment and/or tax legislation. 
Please contact your HR Advisor or FHS HR Representative for assistance in making this determination.

 

Note: this does not apply to honoraria made payable to McMaster University by outside institutions for faculty members acting on behalf of the University.  Such payments will be dealt with in accordance with the Guidelines for Treatment of External Payment for Existing Employees.

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