Paying Workers Directly: Your Obligations
If you self-manage and engage a support worker directly, understand employee vs contractor and the tax, super, insurance and workers' comp obligations.
Self-managing your plan can mean engaging a support worker directly rather than going through an agency. It's a great way to build a consistent, personal support arrangement, but it can also make you an employer, with real legal responsibilities. This guide explains, in general terms, what directly engaging a worker can involve, so you know what to check and where to get proper advice.
Self-managing means you're the one arranging it
Employee or contractor?
What employer obligations can involve
The SCHADS Award as a pay reference
Records and getting it right
Where to get proper advice
Frequently asked questions
Can I pay a support worker directly if I self-manage?
Yes. Self-managing lets you engage a support worker directly rather than through an agency, which gives you real control over who supports you and how. The important thing to understand first is that doing so can make you an employer, with legal responsibilities, so get advice specific to your…
Is my support worker an employee or a contractor?
It depends on the actual nature of the relationship, not just the label. Broadly, an employee works under your direction in an ongoing way, while a genuine contractor runs their own business for multiple clients. Getting this wrong can cause serious problems, so put the question to an accountant,…
What obligations do I have if I employ a worker?
If a worker is genuinely your employee, obligations can include withholding PAYG tax, paying superannuation, providing leave entitlements, holding appropriate insurance and workers' compensation, and keeping pay records. A genuine contractor arrangement shifts some of these to the worker, but only…
What is the SCHADS Award?
The Social, Community, Home Care and Disability Services (SCHADS) Award sets out minimum pay rates and conditions for disability support work, and it's the usual pay reference in this sector. If you engage a worker as an employee, paying at least in line with the relevant Award is part of your…
Do I need insurance to engage a worker directly?
Appropriate insurance, and workers' compensation cover in case a worker is injured, are among the responsibilities that can come with engaging someone directly, particularly as an employer. The exact cover you need depends on your arrangement, so get advice from an accountant and check your…
Who can help me set this up properly?
For the money and legal side, an accountant or bookkeeper, the ATO and Fair Work are the right sources. A support coordinator or plan manager can help you set up the arrangement and keep records, as in Getting Help to Manage Your Plan. This guide is general information only, not individual advice.