You have the most choices if you have selected to self manage.
It is really helpful to be informed so you can plan and choose how and when you are going to set up your support people.
I used only contractors with an ABN for the first while to buy myself time on my decision to direct employ or not. I also used some of that time to look at my budget and choose an accounting system. I needed to know what was required with direct employment and how involved it was, also how long it looked like taking me to set up. I also considered some local options, mentors and the cost for others to help me with it all too.
Service Providers
You can use any service provider you like, there are plenty around and they would all like your funding, so make sure you negotiate a contract with them that suits you and your budget. You can engage providers directly or by booking them once you have set up a service agreement with them through the NDIS portal as an online booking. There is no need to lock in your funding so don’t be pressured to do so. Your circumstances and weeks can change and as you come to the end of your funded period, you could find that you haven’t used pre booked or locked in funding. You may prefer to use it elsewhere and sometimes it means you can not get the funding back. So be clear and ask direct questions to providers about what their statements mean and check you are getting what you need and think you are. Clearly ask can I have… or do you … does this mean I will be able to … what if this happens… etc. Go over the contract till you are absolutely clear it means what your thinking and hoping for. Ask for transparency on any extra or unstated charges, if there are none have that written into the paper work too, and before you sign anything ensure it is stated that should you be dissatisfied with services or providers are not upholding there support of you or your loved one well enough, that you are free of charges to move to a different provider. It is sometimes useful and interesting to ask what rate your workers will be paid at, if they get super and if they get public holiday rates.
Labour hire or on-hire arrangements
You can obtained your workers through a labour hire (or on-hire) firm and pay that firm for the work undertaken in relation to your care, then you or your business has a contract with the labour hire firm and they are responsible for withholding the PAYG (Pay As You Go) tax, superannuation contributions and FBT (Fringe Benefits Tax obligations) which relates to a specific type of employment contract. Labour hire firms can be called different names including recruitment services and group training organisations (where your business is referred to as the ‘host employer’).
Hiring individuals
If you’ve hired an individual, it is the type of work relationship and details of any working agreement or contract that determines if they are a contractor or employee for tax and super purposes. The agreement or contract your business has with the worker can be written or verbal.
How to work it out, have I got a employee or contractor arrangement?
For the most up to date direct and legally straight information go to the ATO site and have a good look around. Their online calculator asks you questions and helps you get very clear picture of your legal requirements with what you intend or are currently doing. This site also allows you to print off a copy for your records of the outcome of that calculation. It is not linked or sent to the ATO directly but provides you with how your working relationship was determined. This information you can print and put in your paper work for evidence should you ever need it. (ie in an audit situation)
It is to easy to think you know or listen to others, however this is one area where you need to know how you are operating as lawful penalties apply. The information here comes from the Australian Tax Office site and refers you to their site.
- An employee works in your business and is part of your business.
- A contractor is running their own business.