Prior to engaging a Contractor, it is essential to obtain the necessary information to determine if it is appropriate to engage them as a Contractor.
Note: all teaching and related roles, including marking, must be paid via a HR Employment Contract, this includes but is not limited to teaching undergraduate and post graduate courses, short courses and certificate courses.
The following information describes the process for Contractor Management.
- Who is a Contractor?
For the purposes of this Contractor Management process, a Contractor is anyone engaged by the University in an activity which involves a labour component performed in Australia, or performed by Australian residents overseas and will invoice for work done for payment via Accounts Payable.
- Includes: Consultants, Entertainers
- Excludes: Labour hire agencies and contracts for materials only.
- Excludes: Larger organisations with multiple employees who would cover the statutory obligations for those employees
- Why introduce Contractor Management?
The University has legal obligations in relation to:
- Sham Contracting - Contractor vs Employee
- Payroll Tax (PRT)
- Workers Compensation
- What do I need to do?
Information about the Contractor must be obtained by the local area PRIOR to engagement. A flowchart has been development to assist you in the process.
- Contractor Questionnaire - completed by the Contractor
- Contractor Assessment Tool - for individuals / sole traders to be completed by the person engaging the Contractor.
- Once the outcome has been determined, raise a Purchase Order - if the total cost is $20,000 or over, you must engage Strategic Procurement or seek an Exemption, refer to the Procurement Process.
Conflict of Interest - where there is an actual, potential or perceived conflict of interest, a Disclosure of a Conflict of Interest Form must be completed. Refer to the Conflict of Interest procedure or further information.
Decision: Contractor vs Employee
It may be clear from the responses on the forms that an employee relationship exists, and that a HR Employment Contract needs to be set up.
If not clear, forward copies of the forms and a brief description of the work to be done to email@example.com. The forms will be reviewed, and external advice sought if needed.
If PRT, Superannuation or Workers Compensation applies, you will be advised that a HR Employment Contract must be set up or it may be more appropriate to engage via a labour hire agency.
If the arrangement is found to be a genuine contracting arrangement with no PRT, Superannuation or Workers Compensation applicable, the local area would be advised to proceed to a Consultancy Services Agreement and raise a Requisition in ePro.
Payments to External Advisory Panel or Committee Members
Applicable to panel or committee members who attend meetings in an advisory capacity only and are not involved in the day to day running of any aspects of the University.
The appointment of External Advisory Panel or Committee Members and the details of that appointment should be set out in a letter. The Contractor Assessment Tool and Questionnaire also need to be competed.
- Read more
It is preferable for Panel Members to invoice the University of Adelaide either:
- via their University or employing organisation
- or with their own ABN (Note - superannuation is payable if individual/sole trader, not if the entity is a company, partnership or trust)
If this is not possible, payment should be through the Other Payments Form via Kofax. If an invoice with no ABN has been supplied, this can be attached to the Other Payments Form. PAYG tax must be deducted at 47%, by entering a line on the Other Payments Form with a negative amount to account 7261 Department 999 Project 99999999. Superannuation is also payable.
Where superannuation is payable an ATO Super Choice Form must be submitted by the local area to firstname.lastname@example.org together with the panel member’s date of birth and postal address. It is the responsibility of the local area to send invoices/other payments forms to email@example.com so superannuation can be paid.
Invoice from University, Partnership, Company or Trust with ABN Invoice from Individual/Sole Trader with ABN Individual no ABN, paid via invoice or Other Payments Form PAYG Tax to be deducted No No Yes Superannuation Applies No Yes Yes