Contractor Payroll in Australia
PayMe Australia provides contractor payroll services for workers placed through recruitment companies. We handle the payroll behind the placement including: PAYG withholding, superannuation, payslips, timesheets and salary packaging — for a standard fee of 1.75%.
What does PayMe's contractor payroll service cover?
When an Australian recruitment company places a contractor, someone has to employ, pay and report on that worker each pay cycle. PayMe takes on the payroll administration so the recruitment company can keep placing people and the contractor can get on with the work.
Every PayMe contractor gets a named payroll contact rather than a ticket queue, so questions about a payslip, a deduction or a timesheet get answered by a person who already knows the setup.
- PAYG withholding calculated on your taxable wage using the ATO withholding tables, and remitted to the ATO.
- Superannuation at the current 12% Super Guarantee rate in accordance with the applicable Payday Super qualifying earnings rules, paid to the fund you nominate at the same time you are paid.
- Itemised payslips available through the PayMe payroll software, along with your payment history and end-of-year figures.
- Timesheets on the PayMe online portal, emailed to the PayMe timesheets inbox, or submitted through your recruitment company's own system where they have one.
- Eligible salary packaging and salary sacrificing, included in the PayMe fee — see salary packaging for contractors.
- Fee-free novated leasing through PayMe's sister company, Alliance Leasing.
- BankIT, which lets you set money aside from your pay for holidays and gaps between contracts.
- Payroll onboarding, tax file number declarations, super choice forms and bank details — all submitted electronically.
How contractor payroll works with PayMe
The process is deliberately short. Most contractors are onboarded the same business day their contract reaches PayMe.
- Step 1
Your recruitment company sends PayMe the contract
The recruitment company forwards the placement details and the agreed all-in rate to PayMe.
- Step 2
You complete onboarding
You receive login details for the PayMe payroll software and complete the standard payroll forms electronically — tax file number declaration, super choice and bank details. There is no separate employment contract with PayMe; PayMe's part is its General Terms and Conditions of service.
- Step 3
Submit your timesheet
Depending on your placement, you can submit your timesheet directly to PayMe, email it to us, or we can process your hours from the RCTI provided by your recruiter. We’ll confirm the process with you during onboarding.
- Step 4
PayMe processes payroll, tax and super
PayMe deducts its fee from the payment received, calculates your taxable wage, PAYG withholding and 12% superannuation, applies any salary packaging you have in place, and pays your net remuneration and your super.
Want to see the split on your own rate? Use the Check My Rate calculator for fee, taxable wage and super per hour or day, or the Example Payslip calculator to compare payslips with and without salary packaging.
What does PayMe charge?
PayMe's standard payroll fee is 1.75% of the payment received from your recruitment company, with discounted rates available through some recruitment-company arrangements. There are no hidden charges, no joining fee and no exit fee.
That fee already includes eligible salary sacrificing and packaging, and fee-free novated leasing through Alliance Leasing — there is no separate leasing fee for PayMe contractors.
PayMe also has established relationships with many recruitment companies, which can mean adjusted rates or arrangements you may benefit from.
For a rate specific to your placement or your recruitment company, ask PayMe for a personalised quote.
Who can use PayMe?
If a recruitment company has placed you on a contract, you are in the right place.
Recruitment companies can read how the partnership works on the For Recruiters page, or see the full onboarding process.
Contractor payroll FAQs
What does a contractor payroll company do?
A contractor payroll company processes the pay run for workers placed on contract by a recruitment company. PayMe receives the payment from the recruitment company, calculates the contractor's taxable wage, withholds PAYG tax, pays the 12% superannuation guarantee to the contractor's chosen fund, issues payslips, handles timesheets and administers salary packaging.
Does PayMe deduct PAYG tax?
Yes. PayMe withholds PAYG tax from your taxable wage each pay using the ATO withholding tables and remits it to the ATO on your behalf. Your payslip shows the amount withheld.
Does PayMe pay my super?
Yes. Super is calculated at the current 12% Super Guarantee rate in accordance with the applicable Payday Super qualifying earnings rules and paid to the fund you nominate. It is paid at the same time you are paid, and contributions generally reach your fund within 7 business days.
Superannuation for contractorsWhen will I receive my payslip?
We email you a draft payslip before your payment is processed so you can review it. Once your payment has been made, we email you your final payslip. You can also log in to the Contractor Portal at any time to view and download your payslips.
Contractor PortalHow quickly can I be onboarded?
Usually the same business day your contract reaches PayMe. Onboarding is completed electronically through the payroll software, so there is no waiting on paper forms.
Further information
This page explains how PayMe processes payroll. For the underlying rules, see the official sources below. Nothing on this page is personal tax or financial advice.
Related pages
Not sure which rate or salary packaging options apply to you? Talk to the PayMe team.
Contact PayMe