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Ulysses101
Ulysses101, Lawyer
Category: Canada Law
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Experience:  11 years experience in Canada family law, plus criminal, civil, and employment
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Are honorariums paid to volunteers taxable

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Are honorariums paid to volunteers taxable
Submitted: 7 years ago.
Category: Canada Law
Expert:  Ulysses101 replied 7 years ago.

Hello Edmonton

 

Can you give me some details? How much money are we talking about?

 

Are you certain that you are a volunteer and not an employee?

Customer: replied 7 years ago.
I am in the process of determining if we can pay an honorarium to our volunteer mediators rather then just out of pocket exoenses. I wanted to know if this would then be considered income for tax purposes
Expert:  Ulysses101 replied 7 years ago.

I see, you're the source of the honorarium.

 

Canada Revenue Agency considers an honorarium to be taxable work related remuneration. You can still pay it above reimbursement for the mediators' expenses. Depending on the size of the honorarium, you may not need to deduct income tax as a source deduction. Your payroll or accountant should know about that.

 

An honorarium is considered to be in the same category as a commission, tip, or bonus. It's monies going to the person relating to their fulfilling of duties.

 

I hope this helps. Good luck.

Ulysses

 

 

please accept this answer so that I may receive credit for the time and attention I've given your matter.

Customer: replied 7 years ago.
the individualsreceiving the honorarium are NOT employyess but volunteers with the organization
Expert:  Ulysses101 replied 7 years ago.

That may be true, but they are still receiving remuneration for work done for your organization.

 

Subcontractors and those who work solely on commission are not regular employees either, but monies that flow to them are still taxable in their hands as income.

 

You could follow up with your accountant, but I've looked at several sources. Here's the CRA guide to filling out the tax documents, go to Schedule 3: http://www.cra-arc.gc.ca/E/pub/tg/t4033b/t4033b-09e.pdf

In some provinces, I understand that it's not taxable, but in Alberta is it.

 

Ulysses

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