To provide guidance when research projects require the participation of human subjects and compensation is offered as an incentive.
This policy establishes the requirements related to and options available for compensation of research subjects. IRS rules require the University to issue a Form 1099-MISC to any US citizen, including research subjects, to whom aggregate payments of $600 or more were made during a calendar year. IRS Form 1042-S will be issued to any nonresident alien based on payments and tax withholdings processed by a PRD.
The IRS considers a human subject payment as taxable income to the recipient. U.S. citizens or permanent residents earning total payments of $600 or more in a calendar year must be reported to the IRS. Payments to foreign nationals are reported to the IRS and may have tax withholdings applied regardless of amount based on the location of activity and tax treaty status. Certificate of Confidentiality (CoC) designation does not change the reporting requirements of the IRS.
Below are the four options available to pay individual research subjects:
If a reconciliation is not submitted by the deadline, other options will be suspended, and the only payment option will be by University check.
Compensation to nonresident aliens must be made by check through the PRD process with proper documentation. Additional information can be found in BPM E-7-7 Payments to Nonresident Alien Individuals.