In general, remuneration for services rendered to Calvin shall be made through the payroll system and individuals who perform the services will be considered employees.
Without exception, individuals retained to serve as instructors are employees of Calvin and therefore must be compensated through the payroll system. This includes regular courses, interim courses, minicourses, summer courses, tutorial courses, workshops, sectional and private lesson instructors in the music department, camp instructors, camp assistants, and coaches.
Also without exception, individuals already in the employ of Calvin College will be paid through the payroll system for any compensation for services rendered above and beyond the person's employment contract. This will be true even if the compensation would otherwise qualify for payment through Accounts Payable if the person was not already in the employ of Calvin College. The Human Resources web site provides signature guidance for payments to current employees above and beyond the individual's employment contract.
Remuneration for certain services to individuals who are not employees of the College may be paid through the Accounts Payable system provided the payment meets certain tests and criteria as outlined in the IRS code. These kinds of payments will be known as honoraria for purposes of this policy document. IRS Revenue Ruling 87-41 provides a list of twenty factors that are to be considered. The degree of importance of each factor varies depending on the nature and factual context in which the services are performed. The payroll vs. honoraria decision can be quite involved and unfortunately does not lend itself to a brief, concise policy statement. Rather than attempt to distill the IRS guidance into a generalized Calvin policy, a list of Payroll/Honoraria Examples has been compiled. The lists include various issues that have been researched to date and categorize them by payroll and honoraria. New issues that arise will be researched and added to the lists. If there is disagreement over the interpretation of the IRS regulations, the facts and circumstances will be given to Calvin's tax accountants whose recommendation will become Calvin policy.
It is important to note that honoraria payments are taxable transactions to the recipient. The College is required to report cumulative honoraria payments in excess of $600 per calendar year to the IRS via form 1099. Cumulative payments less than $600 are still includable in the recipient's taxable income even though they are not reportable to the IRS.
Honoraria should be requisitioned on a properly prepared Honorarium Check Requisition Form. Please note that the individual's address and social security number must be obtained before the check will be written.