Volunteer Issues
Research/volunteers can escape complex and more costly treatment where certain criteria are met. The criteria pertain to:
- Amount of payment to volunteer
- Frequency of payment to volunteer
- Passive nature of requirements.
- For example, a research-volunteer who receives no more than $400, in one lump amount, in one year, for fairly passive ‘duties’, risks little complication.
In such a situation there are:
- No Australian Business Number (ABN) required providing the person signs a ‘No ABN’ form (Statement by Supplier)
- The payment won’t be deemed income in the hands of the volunteer (considered a ‘windfall’). This means that they will not be required to declare the money in their Individual Tax Return; nor will they be deemed an employee.
- No pay as you go with-holding tax issues (and no similar employment on-costs such as Workcover and superannuation)
- A degree of insurance protection exists in the form of personal accident insurance. For more information contact Helen Bagnell in the Finance Unit.
Where payments exceed $400 and/or a research-volunteer acts in numerous projects then the issue of ABN and contractor vs employee becomes a concern.
If it is in the University’s best interest to regularly use a particular research subject then the nature of the relationship needs to be scrutinized and the treatment of the individual as a volunteer may no longer be valid.
Where repeat volunteers are the best solution, the option of classifying the person as an employee is likely to be the most apt approach. If in any doubt please contact Sam Cooper in the Finance Unit for specific advice.
To summarise; the payments could be graded into 3 categories:
- Volunteer
- ‘Volunteer’/contractor (ABN required)
- ‘Volunteer’/employee. In this instance contact you Casual Administrator for the appropriate procedures.
Category 2 has risks associated with compliance and insurance and is best avoided. A case for this approach should be presented to the Finance Unit for ratification.
Pronounced penalties exist for the incorrect classification of a worker.