Payments for Services

Overview

J-PAL North America works with a variety of individuals and organizations to accomplish our goals. Depending on the nature of the work to be performed, we have many mechanisms of remuneration for their efforts. If you have questions about how to pay for services, please reach out to Sarah Orzalli. It's helpful to provide a proposed scope of work for the services to be performed as a starting point for discussion, and MIT has a helpful guide outlining the process of how to choose a supplier. The information below covers several options for compensating service providers; please be sure to discuss any planned services which may require payment with Sarah so she can advise on the best method for your situation.

Payment to Individuals

Temporary Employees

Temporary employees are contracted workers who perform a job for only a short amount of time. Temporary employees are typically hired during heavy work periods or gaps in staffing to perform duties that would normally be performed by staff, but may also include individuals who have specialized skills who are needed to perform work only for a limited period of time. Please reach out to Liz Zuckerberg to determine whether a temporary employment arrangement is appropriate for your project.

Consultants/Contractors (Independent Contractors)

A consultant is a self-employed independent businessperson who has a special field of expertise or skill and provides professional or expert opinion, advice, or services regarding information or materials in his or her field of knowledge or training to assist others in making decisions or in performing tasks. A contractor is a self-employed independent businessperson who agrees (contracts) to do work for a fixed price. The individual hiring the contractor defines the desired results and the schedule. The contractor generally retains control over the work to be done and determines how the work will get done within the standards and time requirements set. Individuals who work as consultants or contractors are often hired as ‘independent contractors’. MIT requires submission of a form to assist in determination of whether someone should be classified as an independent contractor or an employee. Independent contractors may not be currently affiliated with MIT as an employee or student, or have been employed by MIT within the last two years. Independent contractors must offer their services to other clients, must not require equipment or materials from MIT in order to complete their work, and must pay their own taxes. They are not eligible for MIT benefits. Additional details about MIT's requirement and processes for hiring independent contractors can be found here. Please contact Sarah Orzalli if you are interested in working with an independent contractor.

Honoraria

An honorarium is a small payment to recognize services rendered for which payment is not expected. This is an indication of appreciation and is not intended to reflect the full value of the contribution. Honoraria are typically used to recognize discrete, one-day contributions, such as speaking at a conference. Honoraria are paid via RFP in Atlas and require submission of a W-9 form by the recipient. Please speak to Sarah Orzalli if you are interested in paying honoraria to participants in a project or event. Additional details on the requirements and process for requesting payment of an honoraria can be found here.

Human Subjects

Payments to human subjects (voluntary participants in research studies) may be made in accordance with IRB-approved procedures. MIT allows for human subjects payments to be made  via gift card or check for amounts up to $100 per person, per study. Payments over $100 must be made by check. If you plan to include human subjects payments as part of a research study protocol based at MIT, please develop a plan for payment with Sarah Orzalli at the outset of the study. Details on MIT's human subjects payments policies and processes can be found here.

Payment to Organizations

MIT will make a determination of what type of agreement is appropriate based on the proposed scope of work. Please discuss potential activities with Sarah Orzalli to determine what paperwork and processes will be required. Additional information on how MIT defines different types of relationships can be found here.

Subcontracts

Subcontracts are established when another organization is intended to carry out a portion of the scope of work of a grant. This typically includes collaboration on a project, though in the case of projects funded through our RFPs, MIT's role is limited. Subawardees should have a clear role in the design or conduct of a research project. Subawardees retain control of the intellectual property they develop. MIT's Research Administration Services Office makes the determination of whether a subcontract relationship is appropriate, as well as the level of risk of the partner organization.

Consulting Agreements

Consulting agreements with organizations are established when a "work for hire" relationship is appropriate. Consultants are typically paid at a fixed negotiated hourly rate and MIT retains intellectual property rights for the material it purchases through these agreements. 

Service Agreements

MIT will establish service agreements with vendors as appropriate. Vendors provide goods and/or services within their normal business operations, to many different purchasers. They also operate in a competitive environment. We use service agreements most frequently when reserving external space for events.