Speaker Fees and Incentives for Sponsored Activity Participants | KCTCS

Administrative Procedures

Speaker Fees and Incentives for Sponsored Activity Participants

Procedure Number: 5.4.26-P

Current Effective Date: 08/01/2023

Original Effective Date: 05/01/2013

Revision Dates: 11/01/2013, 09/01/2017, 07/23/2021, 08/01/2023

Revision Number: 4

Revision Summary: formerly business procedure 3.13; update to BA850 form

Responsible Official: Vice President, Administrative Services




1. Purpose

Guideline for handling speaker fees and incentives for participants in sponsored activities.

2. Scope

This procedure applies to all KCTCS employees.

3. Speaker Fee


The terms “speaker’s fee, honorarium, stipend and additional pay” (supplemental assignment payments for employees) are often incorrectly and interchangeably used. Each of these terms has its own definition and use.

  1. Speaker Fee - payment made to an individual, the individual’s bureau, or other business for giving a speech or a limited engagement workshop where a formal agreement with the amount of payment is known prior to the speaking engagement.

  2. Examples may include payment for external personnel: 
    1. Giving a talk or speech.
    2. Presenting to business persons. 
    3. Hosting an awards banquet. 
    4. Participating in a roundtable discussion or facilitating a conference.

  3. With a speaker’s fee, a formal report of outcomes is not expected; but often a contract is presented with the terms of the agreement and may include an invoice.


Ongoing provision of services outside of a speech or a limited engagement workshop are considered professional services and require a Personal Services Contract approved by the Kentucky General Contract Review Committee.


A speaker’s fee differs from an honorarium.

  1. An honorarium is given to an individual, rather than a business or other organization when payment is not required nor expected.

  2. Payment is given from a sense of moral obligation rather than because of any legal requirement being made.

  3. Payment awarded is generally a token of appreciation, less than $600, and non-reportable to the IRS.

  4. A report or any accountability measure is not required, nor is there an invoice.

  5. Payment might be a token of appreciation to cover the individual’s expenses in performing the service.


A speaker’s fee differs from a stipend. 

  1. A stipend is a payment for participation in a sponsored activity, i.e., Upward Bound, Tech Prep, Student Support, Gear Up, and Talent Search.

  2. Stipends are payments that are distinct from wages or salary because the stipend does not represent payment for work performed.
    1. A stipend represents a payment that enables the recipient to be exempt partly or wholly from waged or salaried employment in order to undertake a role that is normally unpaid or voluntary or which cannot be measured in terms of a defined task.
    2. Stipends are generally at a reduced payment amount than what would be expected as a regular wage or salary for similar work.
    3. For incentive payments to participants, please see Business Procedure 5.5.13-P (Incentives to Participants).

4. Participants


Incentives to participants for non-employees should not be confused with supplemental assignment payments for employees.


Information and instructions to making supplemental assignment payments to employees is covered under Human Resource (HR) procedures and includes, but is not limited to: 

  1. Information on faculty overloads.
  2. Acting assignments. 
  3. Computing nonexempt weighted average pay.
  4. Compensation for overtime hours and work performed during holidays.

5. Payment Process


Submitting Business Unit:

  1. Payment of a speaker’s fee is accomplished by processing a Non Purchase Order voucher with PeopleSoft Origin code “PAY” with a copy of the signed speaker’s fee contract/invoice and the prior approval that was granted from KCTCS Office of Procurement to Payment attached to the voucher. 
    1. Account 50192 (Speaker’s Fee) should be charged.
    2. KCTCS Office of Procurement to Payment staff will review the voucher and attached contract for assurance that the contract has the appropriate approvals and then approve or deny the voucher accordingly.

  2. Payment of a sponsor provided incentives to participants, as prescribed by grant programs such as Upward Bound, Tech Prep, Student Support, Gear Up, and Talent Search is accomplished by processing a Non Purchase Order payment method. 
    1. Account 50235 (Student Stipends) should be charged. 
    2. All payments as incentives to participants shall be non-service/work related payments. 
    3. For multiple awards below the $600 Internal Revenue Service (IRS) reporting threshold the “single payment voucher” template shall be used to help get the participant’s information into PeopleSoft Financials in mass versus having to obtain substitute W-9 forms for each participant and loading the participants in KCTCS’ supplier file. 
    4. For multiple payments, requestors are to complete a BA850 form with any additional supporting documentation in conjunction with the Excel spreadsheet template.
    5. Once the BA850 form and template are completed by the user, the signed BA850 form and spreadsheet need to be forwarded to KCTCS Office of Procurement to Payment Services, via email, to accountspayable@kctcs.edu.

  3. Payment of an honorarium, where the amount is below the $600 IRS reporting threshold, a Non Purchase Order Voucher created by Accounts Payables with PeopleSoft origin code “ONL” will be the method of payment. 
    1. Account 50193 (Honorarium) should be charged. 
    2. For amounts over $600 a Non Purchase Order Voucher is created by the business unit and a substitute W-9 form shall be obtained for IRS Misc 1099 Form reporting purposes. 
    3. If during the course of the calendar year (not fiscal year) cumulative payments to an individual speaker/presenter or supplier equal or exceed $600, a substitute W-9 shall be completed by the payee and payment information reported to the IRS for tax reporting purposes.


KCTCS Supplier Control:

  1. Suppliers (speakers’ fees, participant incentives, or honorariums) meeting or exceeding the Internal Revenue Service (IRS) reporting threshold ($600) shall be established as a 1099 supplier.

  2. Existing suppliers shall complete the Substitute W-9 form for any updates to existing information.  The Substitute W-9 form shall be forwarded via KCTCS Technology Solutions Help Desk Ticket process.

  3. New suppliers shall register through the KCTCS Supplier Portal. https://systemoffice.kctcs.edu/suppliers/registration.aspx 


Business units requesting speaker fees, participant incentives, or honorarium payments below the $600 threshold shall track payments made to payee. This is to monitor when a payee (supplier) approaches or reaches the $600 reporting threshold for a calendar year (January to December). 

  1. This information will be tracked with the KCTCS Office of Procurement to Payment Services.

  2. The KCTCS Office of Procurement to Payment Services will contact Business units if a payee has reached or gone over the $600 reporting threshold.

  3. The totals will be verified, and if any Substitute W-9’s are needed, those will be obtained.


Questions regarding the method of payment or differences between an honorarium, speaker’s fee, participant incentive, employee additional pay, etc. should be directed to the KCTCS Assistant Vice President of Business Services/COO.