Guidance Sheet for Research Involving Human Subjects:
If you are planning on paying participants from a research project involving human subjects, please read the following:
The research project must be administered and approved in accordance with Executive
Memorandum No. B-45. http://www.purdue.edu/Business/Executive_Memoranda/indexb.htm
If your project has not been reviewed and approved for human subject involvement, please contact the University Committee on the Use of Human Research Subjects at irb.purdue.edu
or refer to their web page at http://www.irb.purdue.edu/
There are several methods of human subject compensation. Deviations from the amount and method of payment approved by the IRB must be reviewed by the IRB.
Cash Compensation
Purdue is required to report payments to individuals that total $600 or more annually. (This total is from all payments paid and not just from this individual research project.) To remain in compliance with IRS regulations, information needs to be collected on the individuals paid from the research project. There are several methods of doing this:
1. Separate checks can be made to individual subjects for payments of $50.00 or more;
2. A single check can be made to the project director out of which cash payments are made to subjects. (This procedure is reserved for individual subject payments of less than $50.00); or
3. In unique circumstances, separate check(s) to subjects can be made through a special checking account established for the project.
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This method may be used if a large number of participants will be paid or if the project will last for an extended period of time.
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This account will be a Purdue University account and managed in accordance with
University banking procedures.
In all instances, a log containing the name of the subject, the human subject protocol number and time period covered by the payment must be kept by the Project director for documentation purposes. (Sample log attached)
Cash Equivalent Compensation
4. Paper gift certificates (not gift cards) may be issued to human subjects in lieu of cash or check payments. This method can be used for gift certificates with a face value of $50 or less. Gift certificates must be controlled as if they were cash. A log must be maintained for gift certificates as well.

Non-Cash Compensation
5. Coupons received free of charge from various vendors as a marketing tool may be distributed to human subjects in lieu of more traditional methods.
6. Giveaway items of nominal value may be purchased as a form of compensation. Giveaway items must have sponsor prior approval.
7. Food or refreshments to participants during the gathering of required data may be used as an incentive for participation. Food purchases must have sponsor prior approval.
Detailed procedures for initiating and managing all types of human subject compensation can be found at: http://www.purdue.edu/taxes/Human_Subjects/http://www.purdue.edu/taxes/Human_Subjects/
Business Office Role
The Business Office will assist you with establishing the appropriate process and procurement method for all of the above types of human subject compensation. Expenditures will be incurred through university accounting documents or procurement cards. Human subject payments of any form made from personal funds run the risk of being a non-reimbursable expense.