The Payment to Research Participant check request form in BUY.IU is used to compensate individuals, both employees and non-employees, for their participation in a research study. For this article, we spoke with University Tax Services to address common questions related to these payments.
When should the Payment to Research Participant check request be used?
As its name implies, this check request form should be used to issue payment to an individual for participating in a research study. This form should not be used to reimburse a participant for costs associated with the study, such as mileage. Reimbursements should be handled using the following methods instead:
- IU employees or students: reimbursed through Chrome River using the appropriate travel or out of pocket reimbursement report.
- Non-IU employees or students : travel-related reimbursements, such as mileage, should be reimbursed through the appropriate travel report in Chrome River. Non-travel-related items should be reimbursed through BUY.IU using the Reimbursement for Supplier Out of Pocket Expense check request form.
I’m paying a minor; do I issue the payment to their parent or guardian?
Payment must be issued to the individual who participated in the research study; i.e., the minor. The participant’s parent or guardian can deposit or cash the check on the minor’s behalf.
Research participant payments are taxable income to the recipient. Therefore, it’s important to consistently issue payment to the research participant themselves.
How do I setup a research participant as a BUY.IU supplier?
First, search for the supplier in BUY.IU. It’s possible that another department may have already established the research participant as a supplier.
Once you’ve established that you’re working with a new supplier, answer this question: What is the total value of the payments this participant will receive over the course of the calendar year?
- If they will receive less than $600, use the Research Participant Supplier Under $600 supplier request form.
- If they will receive at least $600, use the Check Request (Tax ID Required) supplier request form.
If you aren’t sure how much the participant will receive, use the Check Request (Tax ID Required) supplier request form. This ensures that the subject’s tax information is on file and their payments can be reported to the IRS, and back to the subject, at the end of the calendar year if necessary.
What object code should I use?
Object code 4061, Subject Payment, is the only object code used with the Payment to Research Participant check request form. 4061 is a reportable object code. University Tax Services tracks its use to determine if a 1099-MISC tax form must be issued to the payee at the end of the calendar year.
We hope these answers help address your questions. If you need more information on proper use of the Payment to Research Participant check request form, or assistance establishing a research participant supplier, contact Purchasing and SDM using the Support Form.