Which family members can be paid?
A family member can be a parent, young person 16 years or older, spouse, sibling or any other relative, that lives in the same house as the disabled person getting support or live outside the family home.
Can I pay a family member who lives in the same house to provide support?
Yes, they can. What used to be Funded Family Care (FFC) changed as of 14th April. Now anyone who has been assessed as having High or Very High needs by their NASC can employ a family member that lives with them to support them.
How do I find out if I have High or Very High needs?
Your NASC would have identified this through the assessment you had when you were allocated your funding. Manawanui will need your NASC to provide in writing the level of your Needs Assessment. This can be in the Service Authorisation, the referral or by an email from you NASC sent directly to Manawanui. We can look this up or make a request to your NASC to get this documentation for you. Just get in touch with us; CEC@manawanui.org.nz.
What employment options are there for a family member that lives with me?
There are a few options for a family member that lives with you to get paid for the support they provide to the disabled person they share a house. Once it has been established that the disabled person has been assessed at high or very high need, the resident family support can be entered onto the Portal.
It is possible to be both the Agent (employer) and the Employee (person getting paid) however this requires either a contracting (sole trader) arrangement, or a separate entity with a different IRD number as the Employer. Both of these options have tax implications, and if you set up a separate entity to be the Employer we recommend strongly that you seek tax advice from an accountant.
If you choose Individualised Funding with Manawanui going forward, you will have four choices:
1. Appoint another person as an agent to act as the employer, go on the payroll service and get paid each fortnight using your IF budget. The employer can be anyone (husband, cousin, aunt, uncle, friend etc) except yourself because you need separate IRD numbers. We will process all your tax and employment related costs such as ACC levies, kiwisaver and annual leave accruals. This is by FAR the easiest way to do it.
2. The second option is to set yourself up as a contractor, pay yourself and get us to pay tax on your behalf. This is called scheduler contracting. We take the tax, and this prevents you from having a large tax bill at the end of the year, this depends on your other personal income you may receive outside of this Funding – but you do have to fill in a tax return which can be done online.
3. The third option is to set yourself as a contractor and do your tax return at the end of the year and pay taxes at that point.
4. The last option and last resort, is that Manawanui will be the employer. This is currently ONLY if there is no other person to fill the agent/employer role. We are currently working out how this will work practically and legally, and there will be less flexibility than managing it independently, however, we will take care of any tax obligations just like any other employer would. Please keep in mind, there is a requirement to use Manawanui Payroll Services, purchase the Employer Protection Package, and an administrative fee of 2% of the gross earnings would be paid from the IF funding.
We are also looking at offering a tax return service at the end of the year if you choose to be contractor.
What’s the difference between an employee and a contractor?
An employee is a person employed to do any work for hire or reward under a contract of services (commonly called an employment agreement). The hire or reward is almost always a wage or salary. Employees have all minimum employment rights under employment laws (e.g. the Employment Relations Act 2000, the Minimum Wage Act 1983 and the Holidays Act 2003), such as:
- Paid at least the minimum wage,
- Have holiday and leave entitlements, and
- Have a written employment agreement.
- Employees also have extra rights, like the right to take a personal grievance.
Self-employed people can also be called contractors or independent contractors; these terms mean the same thing. A contractor is engaged by a principal (the other party) to perform services under a contract for services (commonly called an independent contractor agreement). Contractors are self-employed and earn income by invoicing the principal for their services. A contractor pays their own tax (unless they are receiving schedular payments) and ACC levies.
Most employment laws do not cover Contractors. This means they don’t get things like annual leave or sick leave, and they can’t bring personal grievances.
How does a family member that lives with me get paid?
Depending on your employment arrangement the detail changes slightly but the overall process is the same regardless. In our Web Portal as the Employer, you will create a fortnightly expense claim or timesheet for the hours of support provided. Once you have verified all the information is correct, you submit the claim/timesheet to our Payments team who process it for you.
The difference being if you submit a claim, you are paid the funds to then pass on to the contractor. Whereas for a timesheet, the employee will get paid their take home pay directly to their account.
How is the Funding manages now? Who holds the money?
The Ministry of Health still holds all of the funds, Manawanui as the Host, knows the total amount of funds we are able to invoice the Ministry, based on your use of paid disability supports. As needed, we pay your claims and timesheets up front, then invoice each pay period for the funds that are used.
Can I still use my current payroll provider?
With Manawanui, you are able to use any payroll provider you like. Through our Web Portal, all you need to do is put through a fortnightly expense claim for the total amount required by your payroll provider, including all leave accruals, PAYE, Kiwisaver and ACC levies etc. and Manawanui will deposit that amount into your bank account for you to pass on to the payroll provider.
Manawanui has its own supportive payroll service which is $15 per fortnight and can be paid for using your funding.
How much can a family member that lives with me be paid?
All employees must be paid at least the Pay Equity rates although you can pay more (Pay Equity Rates). Keep in mind the higher the pay rate the quicker the funding will run out. Once the funding is used up, you will need to wait until the next allocation before any more money will be available.
How many hours can a family member work each week?
Typically, up to 40 hours, but your NASC would have allocated the number of hours per week you are funded. You will need to remain within your budget. For example, if you are allocated 6 hours a week, to make you allocation last the full year, you should only pay 6 hours a week for your support at pay equity rates.
What do the family members need to do to get paid?
Depending on what option you have chosen for paying a family member that lives with you, payments can be easy processed on our Portal. If the family member is a contractor or schedular contractor, you can submit an invoice for the time with the hourly rate on to the Portal. An invoice can be typed, handwritten or even submitted as a timesheet.
If the family member is an employee of the agent, it is as easy as submitting timesheet on the Portal. The agent will approve, and the money will be paid into the family member/employee’s bank account. Payroll is fortnightly. If it is submitted by 5pm Monday, it is paid that Wednesday. Late submissions are processed on Thursday and Friday.
Manawanui Payroll Service
There are options for payroll services. Manawanui offers a simple and supportive payroll service. All our systems are integrated to make it easy. We have a help desk that is available to help.
We make it easy – just submit the timesheet on the Portal to be Paid.
More info on our Payroll service can be found here, Payroll Service
What can I do with my funding?
With Individualised funding, you can employ support staff outside of a family member. Depending on where you live in the country and where your funding comes from, there can be some other ways you can use your funding. Please refer to your purchasing guidelines. If you have any questions about this please call CEC 0508 462 427.
Can an agent get paid?
Being an agent is not a paid role. With the cost of running the service, there are some expenses reimbursed. The agent role is separate from the paid family member role. Please contact CEC if you have any questions about this.
What if I still have annual leave under the old FFC set up?
You should terminate your current employment arrangements as you transition to Individualised Funding. As part of the termination, you will be pay out any leave owed. Please note, IRD will require tax be paid on this money. It is advisable to run this through a payroll service or you might have an IRD bill at the end of the year.
Can I use Respite or MSD funding to pay a family member that lives with me?
Respite funding is allocated to give the main family carer a break. A family member, who is being paid to support someone from the IF allocation, cannot be paid from Respite funding. Other family members who are not the main carer and do not live in the same house, can be paid to provide a break for the main carer.
Currently, MSD do not allow resident family carers to be paid under their Individualised Funding policy.
What does it mean for me if Manawanui is the Employer?
We have begun a Pilot to explore the scenario where we employ the resident family carer, it is currently fully subscribed until further notice (13/07/20). There are a few key things that you need to consider and understand if you wish for Manawanui to employ your resident family carer.
- Individualised Funding is not considered income and is therefore non-taxable, wages that you earn as a carer that are paid by Funding is taxable just like any other employment. IRD has a specific page of information you can read here. https://www.ird.govt.nz/income-tax/income-tax-for-individuals/types-of-individual-income/individualised-funding
- You can claim for expenses such as mileage, or purchases related to providing support, all purchases must fit within the yearly budget.
- There is less flexibility in the employment situation, given Manawanui is the employer, we have to ensure that the workplace and employee meet our Health and Safety and all other Workplace policy standards.
- If there are other employees that are not resident family carers you will need to purchase an Employer Protection Package which provides insurance against Personal Grievances and grants you membership to the Employers and Manufacturers Association, this includes access to their employment helpline and online resources.