Research Participant Payment Process
Iowa State University (ISU) balances its responsibility to maintain confidentiality of information
about human research subjects with record keeping requirements of the State of Iowa,
and the Internal Revenue Service. In situations where confidentiality is not related to human
subjects but it is in the best interests of the study to maintain confidentiality,
the same processes
outlined below will apply.
Cell phone and other communication bills may also be considered confidential when human subjects could
be identified. Documentation required for payment processing and audit purposes should be
confidential on the Supplier Invoice. Supplier Invoices identified as confidential will be processed in a prescribed
manner ensuring attached listings of phone numbers are not imaged
and access to documentation restricted
to ensure confidentiality.
Incentives versus Compensation
What is the difference between incentives and compensation? Incentives are low value payment instruments/goods
given to participants to entice them to participate in the research.
In order to be an incentive,
the value of the payment/item must be $20.00 or less. In addition, in order to be considered an incentive,
the payment/goods must be provided to all persons in the study,
regardless of whether they choose to participate.
How are incentives documented? Researchers must maintain lists of all persons in the study who received the
incentive but are not required to obtain a
receipt for the incentive.
Compensation is payment to research participants provided after participation in a research activity.
Payments to individuals in research studies will be recorded in the form of compensation for
Payment types may include, but are not limited to, checks, cash, gift certificates, personal property, and
other items of value. Iowa State University has adopted the following procedures to ensure
payments are reported in accordance with state and federal income reporting requirements, while maintaining an
appropriate level of confidentiality.
How do I Pay Research Participants?
All research participants receiving compensation are required to complete an Iowa State University
Research Participant Receipt Form (RPRF). There are two RPRFs--One is to be used when making payments
greater than or equal to $100.00 and the other is to be used when making payments of less than $100.00. The
difference between the two forms is that for payments greater than or equal to $100.00, ISU requires
participant to provide a Social Security number and address. For payments of less than $100.00, this
information is not required. RPRFs are considered confidential and are handled by employees in the
Controller’s Department and Procurement Services who have signed confidentiality statements. The
University recommends Departments with staff involved in the processing of payments to human subjects
the retention of documentation require their staff to sign similar confidentiality statements.
Research Participant Receipt Form (RPRF)
greater than or equal to $100.00
Research Participant Receipt Form (RPRF)
less than $100.00
Research participants should be informed that information collected allows the University to meet
government reporting obligations and precautions are in place to keep their information secure.
Participants may be given the opportunity to participate without receiving payment if they do not
wish to provide identifying information.
RPRFs are required as documentation for receipt of payment, regardless of the payment type or the
amount of payment. Additionally, when payments are greater than or equal to $100.00, RPRFs are
collect information in order to comply with IRS reporting requirements. If a research participant’s
total compensation from ISU equals or exceeds $600, ISU is required to issue an IRS Form 1099-MISC.
RPRFs are processed in a secure manner so the forms are not imaged with related
accounting documentation and access to the forms is restricted to ensure confidentiality.
Expense Coding for Research Participant Payments
All payments to research participants should use this spend category:
- SC10619 Participant Payment
Direct Payments by Check
Direct payments of less than $100.00 to research participants by check will be made by using an Ad Hoc Payment.
Direct payments of $100.00 or more to research participants by check will be made by using
a Supplier Invoice. The appropriate RPRF must be completed prior to payment processing and attached as documentation to
the Supplier Invoice or Ad Hoc Payment. To maintain confidentiality, departments do not
need to complete the business purpose or
itemization of costs on a Supplier Invoice or Ad Hoc Payment and should type in “See attached” and attach the RPRFs.
The RPRFs will be detached from the Supplier Invoice
or Ad Hoc Payment following payment and retained in secure storage. When
submitting a Supplier Invoice or Ad Hoc Payment, it is crucial to properly identify non-resident aliens. If a payee is misidentified and
we do not withhold the proper amount,
your department will be assessed for the adjustment for withholding.
Direct Payments by Cash
Payments to research participants by cash will be made by requesting a cash advance using an Ad Hoc Bank Transaction.
Departments should follow the University’s outlined cash advance process. Research
participants must sign an RPRF at the time they actually receive their cash payment. Departments
will document use of their cash advance by processing an Accounting Journal to clear the advance and
attaching the RPRFs. RPRFs will be detached from the Supplier Invoice or Ad Hoc Payment following payment and retained in
secure storage. As payments of $100.00 or more to non-resident aliens usually
require 30% withholding
for federal taxes, non-resident aliens should be paid by Supplier Invoice or Ad Hoc Payment rather than in cash. This will allow the
Accounting Office to properly handle the withholding.
If a department pays a non-resident alien in cash, the
department also will be assessed for the adjustment for withholding.
Payments by Procurement Card (P-Card) to Acquire Gift Certificates/Gift Cards or Other Property
If the PI elects to provide compensation using gift certificates/gift cards or other property,
procurement of such items can be made by using the ISU P-Card. Purchases by P-Card must comply
card policies. The department must complete an RPRF for each gift certificate/gift
card or property given. The RPRF(s), along with the original vendor receipt, should be kept with
the P-card transaction records
in the department. When indicated on the RPRF, it is necessary to
forward a copy of the RPRF to the Controller’s Department for IRS reporting purposes. To ensure proper tax reporting
and withholding, we strongly
encourage you to pay by Supplier Invoice, rather than by cash or gift certificate,
when the amount is $100.00 or more. Documentation
will be retained in secure storage by the Accounting Office.
If gift certificates/gift cards or property cannot be procured using your purchasing card because of
transaction limits, a vendor’s non-acceptance of Visa, or for any other reason, contact Procurement Services
Refunds and Cash Repayments
Any gift certificates/gift cards or other property that are not used must be returned to the store for
credit within 30 days of the completion of the study. The unused portion of a cash advance must be
reported back into the account from which it was originally charged within 30 days from when the cash
advance was issued.
Questions regarding the processes for making payments to research participants may be directed to one
of the following individuals:
Questions regarding implementing the requirements while maintaining confidentiality requirements
for the IRB: