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Consultancy/Contract Work
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B - 31.5 Consultancy/Contract Work
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31.5.1 Individual
Where a school contracts with an individual, payments must be processed through the payroll system with the usual deductions for taxation. Payroll tax and workers’ compensation insurance are also applicable. The above applies even if that individual is part of a company. If a particular person is requested to perform the service then he or she is considered an employee and the payment must be processed by Human Resources.
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31.5.2 Restrictions
It is not possible for the University to contract with the particular individual and then pay a family company or partnership.
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31.5.3 General Payment
Where a school enters into a contract for services with a company or business partnership and it is not important which member of that company or business partnership performs the work then Financial Services may make a general payment, provided a formal invoice is submitted by the company or business partnership.
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31.5.4 Taxation
Should a school wish to enter into a contract for services and it is intended that contract payments not be taxed, the school should complete a ‘Request to Engage a Contractor’ form. Request forms should be forwarded to Human Resources for advice prior to entering into any contracts.
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31.5.5 Individual's Taxation
Consulting and contract payments to individuals which do not satisfy income tax requirements will be subject to income tax deductions and will be taxed at the maximum tax rate unless a 'Tax File Number Declaration' form (available from Human Resources) is submitted.
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