Student participant costs in NSF budgets counts as direct cost

A common budget question gets asked about students who participate in the National Science Foundation Education and Human Resources NSF EHR grants and get paid for items such as focus group participation.  Does it count as direct cost?  Yes, it does.  Just read the language on page 53 (Page II-19) of Proposal & Award Policies & Procedures Guide (PAPPG) (NSF 19-1)

Human subject payments should be included on line G6 of the NSF budget under “Other Direct Costs,” and any applicable indirect costs should be calculated on the payments in accordance with the organization’s federally negotiated indirect cost rate.