Research Subject Payments :: Financial Services :: UW Financial Management
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Research Subject Payments

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Process Overview

Research projects involving human subjects often offer a small payment to the research subjects for purposes of recruitment or encouragement for participation in the project. Payments to research subjects can be made using one of the following methods:

Cash used for incentive payments can only be acquired through a Field Advance or a currency Department Revolving Fund.

See the Researcher's Guide Clinic Trials for more information.

Tax Reporting and Withholding

Record Keeping

Research subject payments are tax reportable to the individual in excess of $600 annually.
When payments are made to research subjects, the custodian of the funds MUST maintain a record of the subjects being paid.
This record must include:

  • the full legal name of the subject
  • the subject's Social Security Number
  • the subject’s permanent address (not a work address)
  • the amount given to the subject
  • the payment date and/or service period
  • the subject's signature showing receipt of the payment if paid in cash

This information should be kept secured and confidential in your department files, but may be reviewed by state or internal auditors.

One time research subject payment of $50 or less

Where a one time payment of $50 or less is being made to a research subject, the requirement to obtain a Social Security number is waived.
However, the University of Washington strongly encourages researchers to request Social Security numbers for all research subject payments.

For research subjects who are known to be foreign nationals, tax identification number should always be obtained for foreign nationals regardless of the dollar amount. See the Foreign National section below for more information.

Research Subject payments in excess of $600 annually

If a research subject is paid $600 or more annually, the departmental custodian of the funds (field advance, revolving fund, ProCard, gift cards) is responsible for reporting those payments to Financial Services Tax Desk for purposes of 1099MISC reporting to the Internal Revenue Services. In these situations, the custodian must report the following information to the Financial Services Tax Desk by January 10th of the calendar year of payment:

  • the full legal name of research subject
  • the subject's Social Security Number (SSN)
  • the subject's permanent address (include city, state and zip code)
  • the amount of given to the subject
  • payment reference numbers and payment dates
  • brief description of the type of payment
  • name, phone number and department name of person preparing the report

Because the information contains sensitive material, it must be transmitted to AP in an Excel spreadsheet (see example here) saved on a flash drive and delivered to the AP Tax Desk either:

  • in person (preferred method)
  • sent by campus mail at Box 351130 in a sealed envelope addressed to AP Tax Desk and marked private and confidential.

Revolving Funds

A revolving fund account is an advance of funds to an individual custodian on behalf of a department. Revolving fund accounts are mainly used for small dollar authorized purchases and paying research subjects other than Non-Resident Aliens. Expenditures may not exceed $700 per item. Departments may set their own limit below this amount. As purchases are made, departments must request reimbursement in order to replenish the account. Annual independent fund verifications for each Revolving Fund Account must be performed and will be requested by Banking & Accounting Operations. Records of each payment to research subjects via revolving fund MUST be kept and reported to the Financial Services Tax Desk at the end of each year, if applicable. (see Tax Reporting and Withholding section above for more information.)

Field Advance

A field advance is, in essence, a loan from University of Washington general funds made to an individual (the custodian) to provide a temporary source of funds for conducting official UW business that cannot be paid for using traditional methods (i.e. purchase orders, check requests, UW Travel/Procurement credit cards). The field advance may be for any amount of money as long as the department administrator or designee has authorized the request. A field advance cannot be issued for more than a six-month period. If funds are needed for a longer period, an additional advance may be requested near the end date of an outstanding advance. At the end of the activity for which the funds were requested, the custodian must reconcile the expenditures against the advance. Any amount that was not spent must be returned to the UW by check or money order. In turn, if the appropriate expenditures exceed the amount of the advance, the UW will reimburse the custodian by check, if allowed by him/her department Records of each payment to research subjects via field advance MUST be kept and reported to the Financial Services Tax Desk at the end of each year, if applicable. (Please see the Tax Reporting and Withholding section above for more information)

Gift Cards

In some cases a gift card may be the preferred form of payment to research subjects. Gift cards can be purchased with field advance funds, revolving fund accounts, ProCards or reimbursed on check requests. The gift cards should be treated exactly as you would handle cash; adequate controls and security must be provided for the cards, and recipient information must be documented. Records of each payment to research subjects via gift card MUST be kept and reported to the Financial Services Tax Desk at the end of each year, if applicable. (Please see the Tax Reporting and Withholding section above form more information.)

Foreign Nationals

Due to tax withholding requirements, research subject payments to foreign nationals may ONLY be paid via the Check Request process, noting the foreign country of residence on the Check Request form. Research subject payments to foreign nationals are automatically subject to 30% tax withholding. These payments will be captured and reported on IRS form 1042-S by the Financial Services Tax Desk. More information can be found on the University of Washington's Global Operations Support web page.

Note: Subject payments to foreign nationals are the ONLY subject payments allowable on check requests.

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