We have two ways of handling subject fees depending on the
confidentialty. If that is not an issue we pay the subjects on a list
attached to a voucher more or less like a consultant and will issue a
1099 Miscellaneous Income Statement if the amount reaches the $600
threshold.

If the subjects need to be kept confidential we will advance funds to
the PI. He is then responsible for keeping the money in a safe place
and paying cash to the subjects. He maintains a list of funds
distributed. At the end of the project he would be expected to
account for the funds, ie the number of subjects paid and the rate.
Any unspent funds would be returned to the project.

Chris McDowell
Project Fiscal Analyst
Grants & Contracts
Western Michigan University
xxxxxx@wmich.edu