Contingent Worker Payment
Contingent Workers Payments will be made through Human Resources (HR) and not Finance, due to the implementation of the new work flow process. Contingent workers have legislative on-costs that include Superannuation Guarantee Contributions and possible Payroll Tax implications.
The Contingent Worker Payment Form requests details of the payment and cost centre. Supporting documentation (such as an invoice) must be provided along with a copy of the original agreement (i.e. CSA). The form is approved by a financial delegate then assessed by HR Contractor Compliance for employer obligations.
If superannuation and payroll tax (PRT) apply to an engagement, the contractor will be setup for payment via the HR system and a payment form needs to be submitted when payment is due.
This form requests details of the payment and cost centre. Supporting documentation (such as an invoice) must be provided along with a copy of the original agreement (ie. CSA). The form is approved by a financial delegate then assessed by HR Contractor Compliance for employer obligations.
Request a contingent worker payment
Frequently asked questions
When will payments be made?
Once approved, payments to individual's bank account and superannuation funds will occur fortnightly.
Can contractors choose their own superannuation fund?
Yes, contractors can choose their own super fund. If contractor is deemed to have superannuation applied, HR will seek choice of fund details, if not provided, then stapled fund will be selected.
If no stapled fund is identified, then the Universities default super fund - Unisuper.
What entitlements might apply to my cost centre?
In addition to the cost for services received, your cost centre may be liable for payroll tax (PRT) which is calculated on an annual basis depending on the number of days worked during the financial year.
Given below is the on-cost breakdown:
10.5% Super Guarantee Charge
4.95% - Revenue SA
For other payroll tax that apply to different states, please refer to Payroll Tax Australia
Who are the financial delegates?
The financial delegates who are required to approve payment requests are staff associated with a cost centre with a formal financial delegation. The delegate will be identified based on the total contract value associated with the engagement.
I have an existing supplier, can I create a new purchase order?
If you have been advised that the existing supplier is a contingent worker – then no, you need to submit a contractor assessment form so that they can be setup for payment via HR.
Will I be able to see financial commitments on my BI/Cognos reports?
Financial commitments will display where there are open purchase orders in the Finance system. HR commitments will not display for any contingent workers. Actuals for payments made via HR will appear in Financial reporting as they currently do.
What if a contractor changes their personal details, bank or superannuation fund details?
The contractor will need to contact the HR Service Centre to have their personal or payment details updated.
How will contractors receive confirmation of payment?
Contractors will receive a system generated email confirming the processing of payment with advice that they will receive the payment within 2 weeks. This email is also received by the staff member who requests the payment.
What details will be required from contractors?
In addition to personal details (name, address, email), contractors may be required to provide an ABN, choice of fund superannuation details, bank account details. HR will contact the relevant person if payment is required via the HR system.
What if a Contractor does not provide an ABN?
Generally contractors look after their own tax obligations, so as an employer we don't have to withhold from payments to them unless they don't quote their ABN to you, or you have a voluntary agreement with them to withhold tax from their payments. Tax will be withheld at the top tax rate if not provided.