Honorariums/Gifts to Speakers | KCTCS

Administrative Procedures

Honorariums/Gifts to Speakers

Policy Number: 5.4.22-P

Current Effective Date: 08/01/2017

Original Effective Date: 11/01/2013

Revision Dates: 11/01/2013, 07/01/2013, 05/30/2017

Revision Number: 3

Revision Summary: Prior Business Procedure 4.25

Responsible Official: Director of Procurement to Payment

References:

1. Purpose

To outline one-time cash or non-cash payments or tokens of appreciation to participants.

2. Scope

This procedure applies to all KCTCS employees.

3. General

3.1

An Honorarium is a one-time cash or non-cash item of appreciation made to an individual, who is not an employee of KCTCS, for a special non-recurring activity for which a fee is not legally required.

3.2

An honorarium is provided as a token of appreciation to the individual for participation in an activity and not as a contractual obligation to pay for services rendered.

3.3

An honorarium cannot be used as a payment for specified services rendered by either an independent contractor or a KCTCS employee. 

  1. Contact KCTCS Office of Procurement to Payment Services to determine if an individual is an independent contractor.

3.4 Honorarium examples: 

Honorarium examples:

  1. Guest lecture or presentation. 
  2. Cultural performance. 
  3. Presentation of research papers. 
  4. Participation or leading colloquiums, workshops, or seminars.

4. Requirements

4.1

KCTCS employees are not eligible for an honorarium from KCTCS. 

  1. KCTCS employees may receive overloads and other compensation for additional services.

4.2

Honorariums/gifts may not be paid to companies or organizations. 

  1. Services provided by companies or organizations must be contracted.

4.3

The honorarium/gift should not be used to avoid compliance with Business Procedure 5.4.12-P or Business Procedure 5.4.14-P.

4.4

An invoice cannot be used to pay an honorarium/gift.

5. Payment Process

5.1

A request for an honorarium must be submitted on a BA8 Form.

5.2

Generally, non-cash gifts to non-employees will not incur a taxable benefit provided the value is nominal and the gift is not given in lieu of providing cash compensation that might otherwise have been agreed upon.

  1. Gift certificates, gift cards, gift coupons, etc. are considered “cash equivalents”. 
  2. Gifts of this nature, processed from group or department funds are highly discouraged because of the transaction processing costs and additional financial implications for both the department and the recipient.

5.3

Giving an honorarium requires the recipient to provide a completed KCTCS substitute W-9 form to report the “cash equivalent” or cash payment to the IRS for tax purposes.

5.4

Gifts and awards of a non-monetary nature (example: cups, mugs, t-shirts, pens, padfolios, etc.) are generally considered non-taxable to the recipient unless the approximate Fair Market Value is $100 or greater.

5.5

Non-cash items require prior approval from the KCTCS System Director of Business Services.

5.6

The maximum dollar limit for honorarium payments is $5000.

  1. The KCTCS Vice President of Administrative Services may grant exceptions to this maximum limit in writing.
  2. The honorarium must receive all required approvals, which has been established in procedure 5.1.10 and listed below:
    1. Guest speaker fees including honorarium(s) up to $5000 – final approval needed by College President/CEO or KCTCS Cabinet Member. 
    2. Guest speaker fees including honorarium(s) greater than $5000 – final approval needed by KCTCS Vice President of Administrative Services.