Handbook of Business Procedures
Date published: Nov. 23, 2010
Last revised: March 28, 2022
Issued by: Tax Services
12.4. SPECIAL PAYMENTS, INCLUDING HONORARIA AND STIPENDS
A. Introduction
Payments to individuals often go by special names, such as stipend, honoraria, fellowship, scholarship, or reimbursement. Regardless of the name used, the reason for the payment will control the type of authorization required. Follow the guidance below.
B. Payment for Work or Services
A payment for work or services performed by an independent contractor (as classified by the EICCC) is authorized by a purchase order, business contract, or Exempted Services Authorization Form (ESAF). See HBP Part 12.2 Authorizations for additional information.
An honorarium is a payment made to an individual for services for which fees are not traditionally required, such as speaking at a conference, liaising with stakeholders, participating in research, providing expertise, etc. Although the individual may not consider such activity “work”, this is a payment for services for federal tax purposes. This includes a situation where the sponsoring CSU may provide a token payment in appreciation of the individual’s services.
Process payments for work or services via *DEFINE on a VP1, VP2, or wire transfer through Cash Management Services.
C. Payment for Educational Pursuits
A payment to support an individual's personal educational pursuit, sometimes known as a scholarship, fellowship, or stipend, is authorized through FRMS Student Accounting. This does not include a payment for work that benefits the University.
Enrollment at the University is not required for these payments.
D. Payment for Travel
A payment, including a reimbursement, made for travel expenses incurred for the benefit of the University is authorized in accordance with HBP Part 11. Travel. The taxability of these payments is determined by compliance with the University's travel policy.