How to Manage and Pay Contractors in Employment Hero Payroll

• Employment Hero Payroll now supports contractor management directly inside the platform
• SCHADS/NDIS providers using staffing agencies or independent contractors will benefit the most
• You can now add, pay, and report on contractors just like employees — all in one place
• The platform supports GST, super, and tax withholding where applicable
• Pay Cat helps businesses set this up properly to ensure full compliance
  
  

📞 Need help? Talk to a Pay Cat Payroll Expert today

If you’ve been using staffing agencies or independent contractors to fill shifts in your SCHADS or NDIS business, you know how clunky payroll can get.

Until now, Employment Hero Payroll users had to manage contractors separately — using spreadsheets, external tools, or awkward internal workarounds like “ghost” employee profiles on a never-used pay schedule.

That’s finally changed.

Employment Hero Payroll has just released new functionality that allows you to add and pay contractors directly within the payroll platform — no more manual tracking or off-system payments. 

A practical solution for SCHADS teams handling contractor payments.

Key Benefits:

• Add contractors easily using a step-by-step Contractor Wizard
• Apply correct tax rules (including voluntary agreements or no ABN situations)
• Enable super payments for contractors if applicable
• Automatically calculate GST (or mark them as GST exempt)
• Include contractors in existing pay schedules and payroll reports
  
• Centralise payment records in one compliance-ready system

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1. Add a Contractor Using the Wizard

From your dashboard, simply choose “Add Contractor”. You’ll be guided to enter:

Tip: Date of birth is now required if you're paying super.

2. Set Tax and GST Settings

Choose the appropriate withholding method:

GST settings can also be configured per pay category — including a new “GST Exempt” option.

3. Assign to Pay Schedules & Run Payroll

You can:

Note: Contractors will appear in your employee list with “Independent Contractor” status.

4. View Contractor Records

From the Contractor’s profile, you’ll have access to:

• Pay rates, tax, and super info
• Banking details
• Work types, qualifications, emergency contacts
• Documents, pay run inclusions, and more
  

5. Deactivate When Needed

Finished working with a contractor? Simply navigate to their profile and hit Deactivate. (Note: You can’t deactivate contractors from within a pay run.)

A few current limitations:

• No self-setup or bulk import — contractors must be added manually via the wizard
• No portal access — contractors can’t submit timesheets or update their own details
• No STP reporting — contractor payments are excluded from STP submissions
• No access for restricted users — users with limited access can’t manage contractors

If you’re in the care sector, you likely rely on agencies or contractors to cover staffing shortfalls, weekend shifts, or specialised services. That flexibility is essential — but the admin burden that comes with managing off-system payments isn’t.

This update means:

• Fewer spreadsheets
  
• Faster pay runs
  
• Cleaner records for audits
  
• GST and tax compliance handled automatically
  
• Contractors = active records → better visibility and more accurate data
  
  

And if you're using Pay Cat’s SCHADS interpreter, you already know the value of payroll automation and compliance.

See how Pay Cat can simplify payroll for your business.

📽️ Watch our short videos on how to use all the features inside Employment Hero payroll >> Employment Hero Tips & Tricks

📽️ Get up-to-date information and help on everything from SCHADS Award changes to leave entitlements to pay day super >> Watch on demand webinars

Pay Cat are payroll specialists dedicated to helping Australian businesses simplify payroll and ensure 100% compliance with modern awards.

As Employment Hero Payroll experts, we provide tailored solutions that streamline payroll processes, reduce errors, and save time. For SCHADS businesses, our industry-first, 100% compliant SCHADS interpreter template guarantees accurate award interpretation and automation.

Want to get started with contractor payroll the right way?
Book a Demo with a Payroll Expert

Who Is Pay Cat?

Pay Cat are payroll specialists dedicated to helping Australian businesses simplify payroll and ensure 100% compliance with modern awards. As Employment Hero Payroll experts, we provide tailored solutions that streamline payroll processes, reduce errors, and save time. For SCHADS businesses, our industry-first, 100% compliant SCHADS interpreter template guarantees accurate award interpretation and automation.