Problematic Expense Guide - A to Z
- Honorarium Payments in Exchange for Wages or Consulting Services – The payment or reimbursement of an honorarium to an individual in exchange for services rendered, usually over an extended period of time, is a prohibited use of University funds.
- Examples
- Paying an individual an honorarium in exchange for teaching a workshop for our students over an extended/ongoing period of time.
- Paying an individual an honorarium to assist in a UNM laboratory for a period of time.
- The Reason this is Unallowable
- An honorarium is a special type of payment allowed under UNM Policy that is paid only to an individual of high renown or special achievement in exchange for their willingness to come to the University and participate in an event of short duration, with the understanding that payment does not constitute compensation commensurate with the actual services provided. Most honorarium payments are made to guest speakers or seminar participants. According to University Administrative Policy 2170: Honorarium Payments, Section 1: General, “An honorarium is not intended to be a payment for services rendered by either an independent contractor or an individual working in an employment relationship.” For that reason, using an honorarium as a mechanism to pay an individual in exchange for services rendered in what should really be a contractor or employee relationship is specifically prohibited by University Administrative Policy 2170: Honoarium Payments, Section 1: General.
- An honorarium is a special type of payment allowed under UNM Policy that is paid only to an individual of high renown or special achievement in exchange for their willingness to come to the University and participate in an event of short duration, with the understanding that payment does not constitute compensation commensurate with the actual services provided. Most honorarium payments are made to guest speakers or seminar participants. According to University Administrative Policy 2170: Honorarium Payments, Section 1: General, “An honorarium is not intended to be a payment for services rendered by either an independent contractor or an individual working in an employment relationship.” For that reason, using an honorarium as a mechanism to pay an individual in exchange for services rendered in what should really be a contractor or employee relationship is specifically prohibited by University Administrative Policy 2170: Honoarium Payments, Section 1: General.
- Possible Allowable Alternatives - Try this Instead:
- For a vendor/consultant relationship, submit a requisition to the UNM Purchasing department to secure a Purchase Order/contract with the individual.
- For an employment relationship, contact UNM Human Resources about hiring an individual for a short-term or temporary position.
- Examples
