Patty,

Lots of places are able to process payment exclusive of fringe,
typically for "incidental" work.  As this payment is not part of base
pay, fringe benefits should not be spread across the payment.  The real
question does your accounting/human resources system support such
exceptions.

If the withholding is also part of the exception, back into the $50
payment, in other words if a person is suppose to get $50 reduce the
payment by the amount withheld - easy said, much harder to do.  This
would make the incentive equivalent to other participants providing they
are reporting (as they are suppose to) the payment as income.

Maybe this will give you some idea on how the payment can be processed.
Good luck!
_________________________________________
Kris Rhodes MS, CRA
Director, Grants Administration
Wake Forest University Health Sciences Center
Phone:  336-716-0780

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On
Behalf Of Patricia Hagen
Sent: Monday, February 20, 2006 11:06 AM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] Payment to subjects-employees

Good morning,
A colleague within our institution has asked me to post the following
message to the listserve:

We have an NIH contract that involves payments to volunteers who
participate in the study. For University employees we make the $50
payment through the payroll system as required by the IRS. As the
payment is income to the employee we withhold taxes, etc. and charge the
appropriate fringe benefit rate to recover these expenses. Our new
contracting officer has denied the fringe benefit costs. How do other
institutions handle volunteer payments to employees?

Thanks for any advice/input...
Patty Hagen, PhD
Associate Provost
Saint Louis University

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 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
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