Re: Compensation for Employees/Nonemployees Schoen, Alexander 17 Jan 2001 15:22 EST
There is no way a voluntary research participant should be considered an employee. Stipends are usually meant to reimburse participants for the time they spent on the trial or for travel expenses, but that does not constitute an employer employee relationship. They aren't producing anything for you. Their participation is voluntary, they can drop out of the trial at any time. -----Original Message----- From: Research Administration List [mailto:xxxxxx@HRINET.ORG]On Behalf Of Peggy Sandoe Sent: Wednesday, January 17, 2001 2:58 PM To: xxxxxx@HRINET.ORG Subject: Re: Compensation for Employees/Nonemployees I would feel that that the participation is voluntary but the tax department's view on this matter is that if we are paying this person a stipend (which we are) then their participation is not voluntary - it is the same as being an employee - in other words if you or I do not show up for work we do not get paid; therefore a voluntary research participant is the same as an employee if we are paying them a stipend for being part of a study. I would love to view the IRS requirement on this, could you tell me where I could find it? >>> xxxxxx@CMH.EDU - 1/17/01 1:12 PM >>> I completely agree with other respondents regarding the voluntary nature of participating in a clinical trial. Employees that participate in a clinical trial should be doing so "on their own time" as well. Since the participation is voluntary, the argument of your tax department falls apart. However, there is an IRS requirement that any person (non-employee) receive a 1099 from an organization when they have received $600 or more in any calendar year from that organization. We've instituted a process of tracking clinical trials participation by social security number within our accounting system so we can generate 1099s for people as appropriate each January. And, we include in our informed consent a paragraph noting this requirement and informing the study subject that the 1099 will be generated and reported to the IRS...Bill Bill Caskey, PhD Director, Research & Grants Administration Children's Mercy Hospital 2401 Gillham Road Kansas City, MO 64108 Voice:(816) 234-3879 FAX:(816) 855-1982 E-mail: xxxxxx@cmh.edu <mailto:xxxxxx@cmh.edu> This communication is intended only for the use of the addressee. It may contain information which is privileged or confidential under applicable law. If you are not the intended recipient or the agent of the recipient, you are hereby notified that any dissemination, copy or disclosure of this communication is strictly prohibited. If you have received this communication in error, please immediately notify The Children's Mercy Hospital at 816-234-3879 or via return Internet electronic mail at xxxxxx@cmh.edu <mailto:xxxxxx@cmh.edu> and expunge this communication without making any copies. Thank you for your cooperation. -----Original Message----- From: Peggy Sandoe [mailto:xxxxxx@WPAHS.ORG] Sent: Wednesday, January 17, 2001 10:03 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. 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