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Honorarium income

Hi everyone,

Is honorarium considered income?

“I got $4000 from honorarium” ?

Sounds like you may need to discuss this with someone first - The company (or yourself) could be potentially characterizing your employment remuneration incorrectly. I have not seen an “honorarium” of $4,000 before.

Very likely it should be on a T4; or in Box 048, which implies a different set of facts.
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“Can that money counted a part of minimum requirement for applying Cerb”
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CERB legislation provides exactly:
"worker means a person who is at least 15 years of age, who is resident in Canada and who, for 2019 OR in the 12-month period preceding the day on which they make an application under section 5, has a total income of at least $5,000 — or, if another amount is fixed by regulation, of at least that amount — from the following sources:
(a) employment;
(b) self-employment;
(c ) benefits paid to the person under any of subsections 22(1), 23(1), 152.‍04(1) and 152.‍05(1) of the Employment Insurance Act; and
(d) allowances, money or other benefits paid to the person under a provincial plan because of pregnancy or in respect of the care by the person of one or more of their new-born children or one or more children placed with them for the purpose of adoption.‍"

Thank you for your quick reply.

I did an internship for the company from September until December 2019. They gave me a cheque after that $4000 and in box 018 T4A. Not in T4. and in the internship agreement, it said that that money is honorarium money. I called CRA they told me that because the money was paid Lump sum payment. That is why it under box 018.

I have another part-time job stop because of COVID-19 ( I started this job from December to March and earned almost 5000$ ).

I am considered that the income from honorarium can be counted as a part of $5000 minimum required income for apply cerb or not because on Canada.ca said that $5000 minimum required can be from honoraria.

“in the internship agreement, it said that that money is honorarium money.”
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They can say it is carrots or cabbages, but that does not necessarily mean its true…
The company may well get a payroll audit from CRA and/or ESB at some time…
But anyway, for you, that’s over now…

So your employment earnings Sept to Dec 2019 would otherwise have been (more correctly) on a T4 for $4,000 (or otherwise on Box 048 and your T2125 for $4,000.)

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“honorariums” are required to be reported in Box 14 of the T4.

Another payroll company does payroll for that company for all of the employees. I am just an internship with them and seem like they never provided T4A for an honorarium for an internship before until I asked them.

On my T4a it showed under box 018 (lump sum payment)

Did you have your T1 2019 tax return professionally prepared by a CPA?

What (how much and type) did you certify your 2019 income as when you filed it?

The place to start would be your official filed documentation - you should first ensure that your filings are correct.

How you actually filed your T1-2019 (together with how you intend to file your T1-2020 income) will give you the answers you need for your personal circumstances.

The proposed penalties for incorrectly filing for CERB can be large, so I don’t think anybody on the internet is going to stick their neck out and tell you (without knowing your exact file) their guess about whether you should do one thing or another.

It was so much headache for me. I file the income tax already. The accountant told me that that 018 T4a is scholarship. And I called CRA they told me that it is not scholarship, it was in box 018 because that was lump sum payment.
I just graduated from accounting program too. This happened is driving me crazy. I searched information before and believed that that money will counted as a part of my income, that is why I applied for Cerb. Other wise, I still meet all requirements for CESB.

So if you don’t know how you filed your T1-2019, (or if you incorrectly reported it as Scholarship income or other S.56 income), then I would suggest that you get that fixed up first, and file a T1 adjustment for reassessment first, if necessary.

Thank you for your advices

Hi @Xox,

This forum is designed for people who use TaxCycle to prepare tax returns. In your email, you have indicated that you hired an accountant to prepare your tax return.

This forum is not designed to help people prepare their own tax returns and, if that is what you are looking for, I would suggest that you look at the community forums operated by a number of retail tax preparation software firms, such as TurboTax or UFile. Checking another professional’s work in a forum designed to support professionals isn’t a professional behaviour, even if you have just graduated from an accounting program.

As for the issue of what Box 018 on a T4A is for, it is a simple matter to turn the paper over and read the slip instructions. If the instructions are not present, you may also go to the CRA’s website at https://www.canada.ca/en/revenue-agency.html and searching for T4A. You will be able to download the slip with the instructions.

I am choosing not to give you the answer directly. As a recent accounting graduate, you are expected to be able to perform research using appropriate and definitive sources and your accounting program should have provided you with that training. The CRA’s website is quite good, is free and is written in plain language, while the CRA’s telephone service has occasional failings.

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