Definition

A nominal fee paid to an individual to participate in a research project, survey or study.

Payments that are $100 or more to Individuals (Including Employees and Students) who are US Citizens or Permanent Residents

All single payments to individuals that are $100 or more must be paid directly to the individual. According to the IRS regulations, human subject fee payments constitute taxable income whenever the total amount paid to an individual in a calendar year reaches the $600 IRS limit. These individuals will receive an IRS form 1099MISC from the University at calendar year end.

Required Payment Forms

Payments to US Citizens

1. Direct Payment Voucher (DPV), Comptroller Form 88R
2. IRS Form W-9, Request For Taxpayer Identification Number

Payments to Permanent Residents

1. Direct Payment Voucher (DPV), Comptroller Form 88R
2. IRS Form W-9, Request For Taxpayer Identification Number
3. Form UPP 192, Alien Determination of Residency Form
4. Copy of Permanent Resident or Resident Alien card (green card) or copy of the I-551 Stamp that is printed on the applicant's passport

Payments that are under $100 to Individuals (Including Employees and Students) who are US Citizens or Permanent Residents

Either of the following procedures may be used to pay Human/Research Subjects as long as a single payment amount is less than $100.

Revolving Cash Fund Procedure  
Cash Advance Procedure

Under either of the above procedures, departments are required to maintain detail records of each payment. Payroll must be notified, by no later than December 15th, if any Human/Research Subject received payments total $600 or more in the current calendar year. The account administrator must provide the following information for each individual; human/research subject's name, address, social security number and total dollar amount paid to the individual.

Payments to Aliens (Non-US Citizens)

According to IRS regulations, all payments regardless of dollar amount constitute taxable and reportable income and, therefore, must be processed through the Payroll Department. Thirty percent (30%) will be withheld from all payments. Foreign individuals will receive an IRS Form 1042S, Foreign Persons US Source Income Subject to Withholding. The individual must have a F-1 (for U of C students only), J-1, or J-2 VISA and must provide either a Social Security Number (SSN) or Individual Tax Identification Number (ITIN).

Required Payment Forms

1. Direct Payment Voucher (DPV), Comptroller Form 88R
2. IRS Form W-8BEN-I, Certificate of Foreign Status of Beneficial Owner for United States Withholding
3. Form UPP 192, Alien Determination of Residency Form
4. Copy of front and back of the individual's I-94 Card, Departure Record