HONORARIA

Background

An honorarium is a payment made to a person which does not represent full compensation for their time and effort. From time to time, these may be paid across the District for various reasons including to recognize volunteers, coaches or guest speakers.

Procedures

1. Honoraria
   1. It is important that all staff understand that there are legal and reporting requirements that must be followed when providing honorarium payments.
   2. Honoraria are considered taxable income under the Income Tax Act and must be reported on a T4A (or T4 if the payment is made to an employee).
   3. Honoraria require advance approval by budget holder and Director of Finance through an Honorarium Request Form, which collects information on the individual receiving the payment, purpose, amount and form of the payment.
   4. All honoraria must be processed through the Director of Finance to fulfil the required legal responsibilities of reporting to Canada Revenue Agency.
   5. Honoraria are limited to $500 total and no more than $50 per hour. If a presenter requires a higher fee, they are to invoice the District (i.e. for instructor services). The invoice will be processed by the Accounts Payable Clerk.
   6. Honoraria are usually only paid to non-staff members. If an employee is being paid an honorarium, it must be for recognition for additional services that are not within their job description. All honoraria paid to employees will be issued through the payroll system and will be reported on employees’ T4 slips.
   7. Honoraria must not be paid by gift card, unless documented and approved extenuating circumstances apply. No employees shall ever be paid an honorarium by gift card.
   8. Honoraria for Indigenous community members can be provided following cultural protocols with approval of the Principal of Indigenous Education.
   9. Honoraria must not be paid with petty cash or with prepaid purchase orders.