Overview: Paying Human Subjects
On this page:
- Control of Funds
- Protecting Participants
- Tax Treatment for Incentives
- Payment Methods by Incentive and Payee Type
Control of Funds
Study administrators assume fiduciary responsibility to ensure proper accounting for funds spent in the study. Adequate controls must be in place for the distribution of the funds and costs must be allocable to the PTA charged.
Protecting Participants
Human Subjects are protected under California State laws and HIPAA regulations. As a result of these privacy requirements, certain business processes must be followed.
- Human Subject Expense Requests transactions will not be viewable by anyone but the preparer, approvers, individuals with authority over accounts charged, and authorized central office staff.
- It should be noted that the first 30 characters of the business purpose of Expense Requests Non-PO Payment transaction will appear in the expenditure reports of the designated project, task and award. It is extremely important that the subject's name NOT be included in the first 30 characters of the business purpose. It is recommended that the statement of business purpose be generic, i.e., "Human Subject Payment." See Resources: Guidelines for Writing a Clear Business Purpose for examples.
The University is aware that many studies are sensitive in nature and information concerning Human Subject participants is confidential. In those instances, the study should not be named in the requisition, but can be referred to by a protocol number or other study identifying number.
Tax Treatment for Incentives
All Human Subject payments and gifts are considered income to the recipient. See table below for tax treatment relating to specific scenarios.
Payment Methods by Incentive and Payee Type
Payments to human subjects or to administrators in order to fund payments or purchase gifts, are initiated within the Expense Requests system, or a Stanford Purchasing Card may be used to purchase gift incentives valued under $200. See table below for various scenarios.
Incentive / Payee Type | Payment Method(s) | Required Documentation | Taxable? |
---|---|---|---|
Monetary, any amount, paid to Stanford and SLAC employees participating in study for their department or related to their employment |
Stanford Payroll | Contact the department HR Manager | Yes, as income |
Monetary, any amount, paid to Non-resident alien |
Direct, Non-PO Payment, requested by administrator in Expense Requests, paid directly to Human Subject | Payee or authorized agent provides banking, residency and tax info via secure Supplier / Payee Request Portal | Yes, 30% Federal Withholding at time of payment. See examples. |
Monetary, $200 or more, paid to legal US residents (except SU and SLAC employees participating for their work or dept) |
Direct, Non-PO Payment, requested by administrator in Expense Requests, paid directly to Human Subject | Payee or authorized agent provides banking, residency and tax info via secure Supplier / Payee Request Portal | Yes, reported by Stanford via 1099 for every U.S. resident who is paid $600 or more in a calendar year |
Monetary, <$200, paid to legal US residents (except SU and SLAC employees participating for their work or dept) |
Direct, Non-PO Payment, requested by administrator in Expense Requests, paid directly to Human Subject ~ OR ~ |
Payee or authorized agent provides banking, residency and tax info via secure Supplier / Payee Request Portal |
Yes, reported by Stanford via 1099 for every U.S. resident who is paid $600 or more in a calendar year |
Advance requested by and paid to administrator for cash disbursement to Human Subjects, followed by Expense Report to clear advance | Administrators retain a record of the Human Subjects' names, addresses, $ value of the incentive, and the Human Subject's signature evidencing receipt, or optionally complete and retain Human Subject Incentive Certification Form | Yes, administrators should alert Payment Services when an individual payee receives multiple incentives totaling $600 or more in a calendar year and Stanford will prepare a 1099 | |
Gifts*, valued <$200 provided to any Human Subjects |
• Advance requested by and paid to administrator to purchase gifts followed by Expense Report to clear advance • Expense report for reimbursement of gift purchase • Stanford Purchasing Card |
Administrators retain a record of the Human Subjects' names, addresses, $ value of the incentive, and the Human Subject's signature evidencing receipt, or optionally complete and retain Human Subject Incentive Certification Form Upload receipt for gift purchase with Expense Requests transaction, ~ OR ~ Fax receipt when verifying PCard purchase in PCard Module |
Not tax reported |
* Non-cash gifts are especially useful for those individuals that may not have Social Security Numbers, non-resident aliens or for studies where a small incentive is appropriate. Non-resident aliens and Stanford or SLAC employees may receive non-cash gifts. Gifts valued at $200 or more are highly discouraged and are subject to tax reporting.
For specific instructions on initiating the various payment methods in the Expense Requests system:
Direct monetary payment to human subject | How To Create New Non-PO Payment Request – Single Payee |
Direct monetary payment to up to 50 human subjects in one transaction | How To Create New Non-PO Payment Request – Multiple Payees |
Request cash advance for human subjects incentives, or to purchase non-cash incentives for distribution to human subjects | How To Create Advance Request |
Request reimbursement and/or clear an advance for domestic human subject incentives | How To Create Domestic Expense Report for an SU Payee |
Request reimbursement and/or clear an advance for foreign human subject incentives | How To Create Foreign Expense Report for an SU Payee |
Request reimbursement for domestic travel expenses for a human subject | How To Create Domestic Expense Report for a Non-SU Payee (Visitor Reimbursement) |
Request reimbursement for foreign travel expenses for a human subject | How To Create Foreign Expense Report for a Non-SU Payee (Visitor Reimbursement) |