Payroll Only Contractors

Payroll-Only Engagements

Where an individual is engaged to perform work that is employee-like in nature (for example, role-based, ongoing, or operational duties), the engagement must be treated as a payroll-only agency engagement and not as an independent contractor or consultant.

A payroll-only engagement means:

• The individual is employed by the agency, not the University
• The agency is responsible for PAYG withholding, superannuation, payroll tax and insurances
• The University pays the agency invoice only
• The individual must not invoice the University directly

This approach ensures compliance with employment, taxation and superannuation obligations and reduces the risk of sham contracting.

• Mandatory Use of Approved Schemes

  Payroll-only engagements must be sourced through the relevant pre-approved government scheme:

  • NSW engagements: NSWBuy Contingent Workforce Scheme (SCM0007)
  • WA engagements: WA Government Common Use Arrangement for Temporary Personnel Services (CUATPS)

  Engaging individuals outside these schemes for payroll-only arrangements is not permitted unless an approved exemption applies.

• When Must a Payroll-Only Engagement Be Used?

  A payroll-only engagement must be used where the individual:

  • Is filling a role or backfilling a position
  • Performs operational or business-as-usual duties
  • Has set working hours or days
  • Works under University supervision or direction
  • Would otherwise be considered an employee

  Payroll-only engagements help ensure compliance with employment, taxation and superannuation obligations and reduce the risk of sham contracting.

• How to Engage a Payroll-Only Contractor

  Confirm the engagement model
  Apply the Contractor and Consultant Engagement Decision Framework to confirm that a payroll-only engagement is required.

  

  Select an approved agency
  Choose a supplier listed under the relevant NSWBuy or WA Government CUA scheme.

  Complete the required forms and send to supplier

  • NSWBuy Order Form or
  • WA Government CUA Service Request Form

  Attach mandatory documentation to the requisition

  • Executed Order / Service Request Form
  • Completed Contractor and Consultant Engagement Compliance Attestation
  • Any additional scheme-required documentation

  Raise a requisition for the full engagement value
  A single requisition must be raised covering the full contract term.

  Commence work only after approval
  Engagements must not commence prior to approval and PO issuance.

  .

• Pricing and Fees

  Payroll-only pricing is transparent and standardised under both schemes.

  • Payroll fees are fixed at 5.14% of the normal time pay rate across both schemes

  Pricing typically includes:

  • Base pay rate
  • Superannuation
  • Payroll tax
  • On-costs and insurances
  • Agency margin

  Key points:

  • Agencies cannot charge above approved scheme rates
  • Supplier fees and margins are capped
  • No additional management or placement fees apply beyond scheme rules
  • Online rate calculators are available for both schemes to estimate total costs

  This means payroll-only engagements may appear more expensive than direct invoicing, but they remove significant compliance, tax and superannuation risk from the University.