THE UNIVERSITY OF MEMPHIS OPERATING PROCEDURES SUBJECT: Payments to Individuals for Research Project Participation PROCEDURE NO.: 2D:03:07D DATE: August 27, 1990 SUPERSEDES PROCEDURE NO.: None DATED: None A. General Information Payments may be made to individuals who participate in University research projects. Payments in amounts up to $100.00 may be made to the participant in cash or by check. This payment process is described in the remaining sections. Payments over $100.00 are addressed in University Operating Procedure 2D:03:07B, Agreements for Personal, Professional, and Consultant Services. Participants must be U.S. citizens or non-resident alien individu- als who have secured a valid U.S. social security number. B. Initiating the Request for Research Participant Payment Form 1. The project director for the research project or his designated approver should initiate payment and authorize the expenditure by completing the second section of the Request for Research Participant Payment form (Attachment I). The director should not sign the certification statement at this time. 2. After the second section is completed, the project director or the individual designated to oversee the research should in- struct the research participant to complete the top section of the Request for Research Participant Payment form. The partic- ipant must sign in the space provided certifying that he partic- ipated in the research project. 3. After the participant has completed the top section of the form, the project director or the individual designated to oversee the research must certify that the person actually did participate in the research project by signing his or her name in the second sec- tion of the form. C. Issuing Payment in Cash 1. The research participant may choose to receive a cash payment instead of receiving a check. If cash is to be distributed, the project director should instruct the participant to present the completed Request for Research Participant Payment form to a University cash custodian (a window teller at the Bursar's Office, at the Speech and Hearing Center Business Office or a departmental petty cash custodian). A departmental petty cash fund may be established to serve as a disbursement fund for research participant payments. A written request to establish the fund should be made to the Bursar in accordance with University Operating Procedure 2D:01:01D, Petty Cash Funds. 2. When the research participant is not a U.S. citizen, payment cannot be made in cash because the payment may be subject to the withholding of federal income taxes. The project director or individual designated to oversee the research should instruct non-citizen participants to submit the Request for Research Participant Payment form to the Accounting Office for check processing. D. Issuing Payment by Check When payment in cash is not feasible, the Request for Research Participant Payment form must be submitted to the Accounting Office for check processing. E. Reporting Payments Payments to individuals for research project participation may be reported to the Internal Revenue Service on a form 1099-Misc. Payments to nonresident alien individuals are reported on a form 1042S - Foreign Persons U.S. Source Income Subject to Withholding. Participants who are employees of The University of Memphis will have their payments reported on their W-2 form. F. Other Information 1. When payment to a participant in a research project exceeds $100.00, the request for payment must be submitted on a Request for Payment to Individual or Contractor form as described in University Operating Procedure 2D:03:07A, Contracts and Agreements. 2. Student athletes cannot participate in research projects and receive payment for his or her participation. Attachment I - Please contact the appropriate office for copies of the REQUEST FOR RESEARCH PARTICIPANT PAYMENT forms.