The IRS requires that all payments for honorariums, prizes, and certain other payments be reported as income to the individual.

Honorariums

An honorarium is a payment that is primarily intended to confer distinction or to symbolize respect, esteem or admiration.  Honorariums may be provided to individuals such as guest speakers or presenters who participate in educational events or projects.  The IRS classifies honorariums as income and they are subject to taxation.  A W-9 form must be on file with Accounts Payable prior to payment.

When processing a Payment Request for an honorarium, a Social Security or Federal ID# and home address must be on record.  Information about the event including dates, location and description of activity must also be provided.

Note:  Performances for athletes or entertainers living outside Minnesota are subject to 2% State Entertainer Tax withholding.

Payment of honorariums and/or expenses to Foreign Nationals are required to be reported, mandatory tax withholding may apply.  Tax withholding may be exempted by applicable tax treaty articles, providing the individual claims the exemption by completing the necessary forms.  Please contact Beth Wurtzberger at bwurtzberger@carleton.edu or Shari Mayer at smayer@carleton.edu for assistance.