If you have a disability, you may be able to get money paid directly into your bank account to pay for the support services and products you need (for example, home help, a wheelchair or transport to the doctor). These payments let you decide what services to buy with the funding you’re given.
This funding is not treated as income, which means:
You do not need to pay GST when you use this funding to pay for disability support services. However, if your service provider is GST-registered, they will charge you GST. You cannot claim GST for funding expenses.
When you hire a service provider, what you need to do depends on whether they are:
If you employ a service provider who is not a private domestic worker, you'll need to register as an employer. You'll need to deduct PAYE, child support, KiwiSaver and student loan repayments from the money you pay your employee or contractor.
Your service provider is a private domestic worker if you answer 'yes' to all these questions:
If your service provider is a private domestic worker, they will take care of their own taxes.
If you hire a service provider who is a self-employed contractor, you do not need to register as an employer. The contractor will take care of their own taxes. If the contractor is GST-registered they will charge you GST for their work.
If you get individualised funding, you need to keep a record of the date and amount of every individualised funding payment you receive.
If you're an employer, you need to keep a record of the wages you pay, including all your pay sheets and PAYE payment receipts. You must keep these records for at least 7 years.
If your service provider is a contractor, you need to keep full and accurate records of:
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