Notice About Using Gift Cards As Incentives in Research Studies
Gift cards purchased for research studies must be pre-approved by a Senior Staff member and a Spend Authorization should be entered into Workday prior to spending the funds.
The required information for each gift card is:
- Store Name
- Gift Card ID#
- Recipient Name
- Completed W9 Form for each Gift Card Recipient
- Date of Disbursement
- Amount
- Purpose (Explanation of why gift card was given out)
If the recipient of a Gift Card is an employee, the gift card will be recorded as income and applicable taxes will be withheld from an employee’s paycheck. If the recipient of a Gift Card is not an employee, then they will receive a 1099 MISC Form at the end of the calendar year.
However, the following exception applies:
An exception to required W9 documentation may be granted when low dollar gift cards are given to incentivize participation in anonymous research studies and the following criteria is met:
- The purchase and distribution of the gift cards are in compliance with IRB regulations
- The Gift Cards are $50.00 or less
- The aggregate payment given to each research participant is less than $600.00 in a single calendar year
Gift cards for research participants are subject to audit at any time and may require additional information at that time.
