Expert: Arthur Naman - 1/12/2010

Question
If participants in clinical research studies receive payment for their participation as independent contractors(IC), shouldn't study participants who happen to be employees be paid for their participation as an IC also?  In other words, shouldn't employees be paid for their research participation separately from their payroll checks since the fact that they did a study has nothing to do with their employment? Since payments for research are considered reimbursement for time/travel, can't a check be issued to an employee through accounts payable as long as the documentation supports what the payment is for?  

Answer
Normally payments to an employee are for all activities engaged in while an employee. Thus payments to an employee as described in your situation would properly be included as wages,  not as an independent contractor.

There may be reimbursement for travel, but not time. The term "reimbursement" means to reimburse for an expense incurred. Travel costs are expenses incurred, time is not.

If an employee has incurred expenses, then the employee normally submits an expense report for which the employer then makes payment.

My comments have been brief; please ask a follow up if you need more information or if this is not clear.