St. Olaf College Stipends and Honorarium Procedures
Title: Stipends and Honorarium Procedures
Effective Date: prior to 2005
Issuing Authority: Controller
Contact: Ellen Bang, email@example.com or at (507) 786-3022
Last Updated: 11-29-2012
Purpose of Procedures
Any labor activity that is supervised or directed, no matter how infrequent or ad hoc, creates an employment relationship between the College and the worker and as a consequence the compensation must be handled through payroll to assure proper tax withholding.
- Stipends or honorariums outside of our payroll system are not permitted when an employment relationship exists - no matter how casual or infrequent.
Who needs to know these procedures
These procedures apply to all St. Olaf faculty and staff.
Please contact Ellen Bang, firstname.lastname@example.org or (507) 786-3022 if you anticipate trying to pay someone with a stipend or honorarium in order to determine if independent contractor status is met and is permitted under Department of Labor and IRS regulations. Payments can always be made to someone through our payroll system because that assures that proper tax withholding will occur. Payment of cash is not permitted.