Do you mean research projects as in clinical trials?
It does not seem correct make study related income taxable and listed on the
W-2.  Those employees participating in trials should be treated in the same
way as an external study subject would be.  You could treat them as an
external vendor in you AP system.

Your organization should have no control over the employees participating as
a research subject, that would be coercive.

Research subject are not employees.

Alexander Schoen
Director, Office of Sponsored Programs
Winthrop-University Hospital

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG]On Behalf
Of Peggy Sandoe
Sent: Wednesday, January 17, 2001 11:03 AM
To: xxxxxx@HRINET.ORG
Subject: Compensation for Employees/Nonemployees

This is my first posting to this listserve - I would very much appreciate
your advice in a situation that has arisen.

Our tax department is considering doing the following two things:

1) Treat the compensation for employees who participate in one of our
research projects as income for employee services rather than subject
compensation and report it on W-2s rather than 1099s.

2) Hire other subjects who are not employees as casual employees.

Their argument is that if the payor is exercising direction and control over
the individual's activites, the person needs to be classified as an
employee.

Has anyone ever encountered these issues before? Any comments you can
provide would be helpful.

Peg Sandoe
Research Manager, Center for Neurosciences Research
Allegheny-Singer Research Institute
Pittsburgh, PA 15212

(412) 359-8973
xxxxxx@wpahs.org

**********************************************************************
This email and any files transmitted with it are confidential and
intended solely for the use of the individual or entity to whom they
are addressed. If you have received this email in error please notify
the West Penn Allegheny Health System, Information Security
Department at (412) 359-1746.

This footnote also confirms that this email message has been swept by
MIMEsweeper for the presence of computer viruses.

www.mimesweeper.com
**********************************************************************

======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
======================================================================

======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
======================================================================