Are you a guest speaker at a church, or a pastor performing special services such as weddings or funerals? Perhaps you need to hire someone to perform these services, but you’re not sure how much they should be paid. This is where an “honorarium payment” comes into play. Think of this as a gift of payment to a pastor you’re asking to perform services. There’s typically no set amount and is determined based on a few different factors that we’ll discuss.
An honorarium payment can include travel expenses, accommodation costs, and any other costs that a guest might incur. Such payments are not required, but this is the standard practice when asking someone out of town to come and speak or perform a service.
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What is an honorarium payment?
The word “honorarium” comes from the Latin term “honōrārium,” meaning “gift.” The plural form of “honorarium” can take either the Latin ending -ia (for “honoraria”) or the English language ending -iums (for “honorariums”).
Whenever a pastor is asked to speak at another church or perform a wedding or a funeral, or even speak at a conference, they usually get paid. Honorarium payments can range from $100 to thousands depending on the event and generosity. The gift is a completely voluntary payment and is not specifically required.
Activities for which an honorarium payment can be made to a non-academic include:
- Special lecture, a short series of such lectures, concert or other creative academic-related activities
- Short-term participation in a seminar or workshop as a guest speaker or panelist
- A speaking engagement
- Appraisal of a manuscript or article submitted to a professional publication
Transactions that cannot be paid by honorarium include:
- Performance fees for entertainers or speakers at a non-academic-based University event
- Services provided by independent consultants and contractors (BFB-BUS-43)
- Additional compensation for summer session teaching, University Extension teaching or extramurally funded research
Why someone might receive an honorarium payment
As mentioned above, there are a lot of reasons someone might receive an honorarium payment, but what exactly are the reasons a pastor would receive them? Typically when a pastor performs a service at a wedding, or funeral or speaks at another church, this is a time for an honorarium payment. The payment is not an honorarium if payment is negotiated and agreed upon, it is then a contractual agreement.
An honorarium payment may also include consideration for travel expenses. If you ask a pastor from another state or even another country to come and speak at your church, then it would be kind to offer to pay for travel and food expenses. You should even pay for their accommodations or provide accommodation from someone in your church congregation that would like to host them.
Weddings – $300-$500+
Are they writing a personalized sermon for your wedding? Or perhaps they are using a template or script that is a standard for most weddings? This is something to take into consideration when trying to determine how much to pay the pastor. The day of the wedding is not the only time the pastor will have spent with the bride and groom. They will spend time beforehand meeting with the couple and at the rehearsal the day or two before the actual wedding.
We’ve asked pastors across the country what their average payment is for an honorarium and the majority confirmed in the $300 to $500 range. Of course, there are exceptions such as travel and accommodations. A pastor might receive a higher honorarium payment if the wedding is a destination wedding and they’re being asked to travel internationally.
Funerals – $200-300+
Just as with a wedding, consider the amount of time the pastor has spent meeting with the family. Specific elements will want to be incorporated and the pastor may be asked to give a short message. Again with a wedding, funerals can be located far away from where a pastor resides. Many people that pass might want a pastor from a different part of their life to speak at their funeral.
Consider also if there is to be a graveside message as well as a message at a funeral home or church. Funerals can often take hours in a day and this is something to think about when the pastor will be someone who is coordinating and often directing the day.
Guest Speaker on Sunday – $100-$600+
You might be thinking that’s a lot for 30 minutes on a Sunday morning. But a lot of time and preparation goes into a message. As does a lot of time goes into preparing for a wedding or funeral service. These are all important events in people’s lives, and it’s an honor to perform at any of them. The amount, of course, is entirely based on someone’s own budget and what they can afford at the time.
Travel Expenses – varies on location
This amount should be calculated based on where the guest is traveling from and if they need to stay more than a couple days. You’ll probably need to provide transport for them if they are not within driving distance.
Breaking Down Honorarium Payment Amounts
Deciding on an honorarium can sometimes be a challenge because of the many factors that can be involved – audience size, number of services, and expected length of teaching time. Here is the logic for basing the honorarium off your pastor’s salary.
You are paying your pastor a certain amount based on their current responsibilities and the variables listed above. For each speaking assignment (morning sermon, Sunday school class, evening session, etc.), pay your guest preacher .5% of the pastor’s salary.
Example:
- Pastor’s salary (includes housing allowance): $50,000
- Number of services: 2
- Guest pastor’s honorarium: $50,000 x 0.5% = $250 x 2 services = $500
This method should allow you to be generous without compromising your stewardship plan. For those with a part-time pastor or those without a pastor, base the calculation on what you would pay a full-time pastor.
As with any of these methods, this one is sure to have its flaws so make sure to adjust them as you need to.
Oftentimes, you might ask your congregation to give a special offering when you have a guest speaker. This is then considered an honorarium payment and given to the guest pastor.
How do honorarium payments work?
There are just a few steps when paying a guest speaker an honorarium payment. Practically speaking, you’ll need to reach out to the pastor and give them information like time date, and event type. Then they’ll perform the service requested and then payment can go through.
The service is determined and agreed upon by both parties
Before any such payments can occur, both parties will need to determine the service that is going to be performed. Do you need a pastor to perform a wedding or a funeral? Are you asking them to come speak on a Sunday morning? For how many services? Determine the amount of time you are asking of them and make sure both parties are aware of this. It’s important that both parties understand what services are needed and what the expectations are.
The service is performed
Next, the service is simply performed. The guest will either preach on a Sunday or other church event, perform at a wedding, or lead the funeral procession. Essentially this service is performed on a voluntary basis and without payment.
The payer sends the honorarium payment to the payee
After the contracted party completes their special duty, the organization will conduct the proper paperwork or filing with accounts payable. Many organizations have a predetermined method for payment requests and processing. In the United States, this method may involve an IRS form 1099-misc or another payment form for US citizens, which often requires the payee’s social security number. Organizations may have special rules regarding honorarium payments to foreign nationals or non-resident aliens, requiring particular visa classifications.
The honoraria payments are processed
Finally, the payer will offer the honorarium to the payee as a thank-you for personal services rendered. The Internal Revenue Service considers an honorarium part of self-employment, and such payments may be taxable income, subject to income tax in the given calendar year.
Are honorarium payments biblical?
You may be wondering, are honorarium payments biblical? Yes, they are!
In the NIV translation of the Bible, it says…
“The elders who direct the affairs of the church well are worthy of double honor, especially those whose work is preaching and teaching.” 1 Timothy 5:17
And in the HCSB translation of the Bible, it even mentions the term “honorarium”.
“The elders who are good leaders should be considered worthy of an ample honorarium,[a] especially those who work hard at preaching and teaching.” 1 Timothy 5:17
An honorarium payment is just how it sounds, a way to honor those who we have asked a special or distinguished service for. This is one of many ways we can show appreciation for their time and ability.
Guest Speaker Honorarium Payment Amounts
Deciding on an honorarium can sometimes be a challenge because of the many factors that can be involved – audience size, number of services, and expected length of teaching time. Here is the logic for basing the honorarium off your pastor’s salary.
You are paying your pastor a certain amount based on their current responsibilities and the variables listed above. For each speaking assignment (morning sermon, Sunday school class, evening session, etc.), pay your guest preacher .5% of the pastor’s salary.
Example:
- Pastor’s salary (includes housing allowance): $50,000
- Number of services: 2
- Guest pastor’s honorarium: $50,000 x 0.5% = $250 x 2 services = $500
This method should allow you to be generous without compromising your stewardship plan. For those with a part-time pastor or those without a pastor, base the calculation on what you would pay a full-time pastor.
As with any of these methods, this one is sure to have its flaws so make sure to adjust them as you need to.
Oftentimes, you might ask your congregation to give a special offering when you have a guest speaker. This is then considered an honorarium payment and given to the guest pastor.
Requirements and Rules
Honorarium payment must be limited to $2,500 per calendar year (The Internal Revenue Service requires all payments of $600 or greater in a calendar year to be reported as income to the individual via IRS Form 1099 NEC; see IRS Publications 1141, 1167, and 1179 for more information on the taxability of individual income greater than $600).
Non-resident payees performing services in California will have 7% of their total payments withheld for state income taxes if the total payments exceed $1,500 during the calendar year.
Documentation Requirements
- Supplier setup: If this is the first time processing payment to the recipient, the individual will need to be set up as a supplier via the New Vendor Setup ticket.
- Completion of the Payment Request Form
- Confirmation that the request is completed and emailed to the invited guest.
- Completion of the Speaker/Performer Waiver of Liability, Assumption of Risk, and Indemnity Agreement.
- Syllabus or flyer of the event.
- Submit a request to Accounts Payable via Service Now .
Tax Withholding
Honorarium payments, while gifts, is technically taxable income. The payments are considered self-employment income by the IRS. So it’s important to understand how to file these payments. For more in depth information, head to the IRS website.
You can request an exemption from self-employment tax for your ministerial earnings, if you’re opposed to certain public insurance for religious or conscientious reasons. You can’t request exemption for economic reasons. To request the exemption, file Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners with the IRS.
Filing
You must file it by the due date of your income tax return (including extensions) for the second tax year in which you have net earnings from self-employment of at least $400. This rule applies if any part of your net earnings from each of the two years came from the performance of ministerial services. The two years don’t have to be consecutive. The exemption is granted if IRS approves your application. Once granted, the exemption is irrevocable.
If you receive honoraria, you must report it on your tax return. There is a common misconception that a payment under $600 does not need to be reported. If an organization or an individual pays you over $600, they must issue you a 1099-MISC and provide a copy to the IRS. Regardless of whether you receive a 1099-MISC or not, the payment should be reported on your tax return.
Honoraria can easily be reported in one of two ways- it can either be reported as other income, or it can be listed as income on a schedule C. If you list it on Schedule C, you can also potentially deduct any expenses that you paid out of pocket in order to perform the service and potentially use the “qualified business income deduction”.
Summary
Any honorarium payment amount is something that you should decide upon before asking a guest to come or a pastor to perform at an event. Discuss this with board members beforehand to determine the amount. Based on the size of your own church and pastor’s earnings, then you can decide a set base amount for any honoraria payments.
In Genesis, the Lord says to Abraham that he will be blessed so he can be a blessing. It’s an honor to be able to provide a generous gift to bless someone’s life!
“I will make you into a great nation,
and I will bless you;
I will make your name great,
and you will be a blessing.”
Genesis 12:2
It’s a lot of information, but we hope that it can help you make a decision on how much you should give to honoraria payments!
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