Peggy, we have employees participate in clinical trials and research projects. It is our policy to require that employees take annual leave for the time required to participate in projects or
trials. In this manner they are basically private citizens while they are a part of the study.

With reference to the payment, we are a state institution, the employees participating in trials and projects receive an overload appointment and the money is paid to them as a part of their
payroll processing. And it is taxed because these individuals are employees of the state and already receive in excess of the $600 that would require the 1099. To me this seems like a very "clean"
method and easily tracked through your accounting system.

Good Luck,
Celia

Celia U. Gravely
Assistant Director for
 Research and Academic Affairs
University of Florida, Pathology Department
P.O. Box 100275
Gainesville, FL 32610-0275
352.395.7977 (voice)
352.395.7978 (fax)
http://www.med.ufl.edu/path/

Peggy Sandoe wrote:

> 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
>
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