All support workers on the Mycare platform are independent contractors. Mycare provides you with the tools to hire the support you need, however, it is helpful that you understand how contracting works for this to go smoothly.
How does contracting work?
Contractors are essentially self-employed and will work with you to decide their work hours, tasks and pay rates. At the time of the interview, agreeing these clearly will be the key to a successful care relationship.
As contractors, the workers are responsible for their own tax, holidays, KiwiSaver and ACC. Therefore, their hourly rate may seem higher but you will not have the additional costs of the above, as would be the case if the workers were your employees. We recommend that you think about the rate you would pay an employee and then add 15% - 20% to arrive at a fair contractor rate.
It is worth noting that you are able to pay expenses such as mileage on Mycare. So on top of the hourly rate, you may provide the worker with a mileage allowance per visit. This is again negotiable but is often expected if the worker was providing transport as part of the role, or perhaps if they need to travel outside of their normal working area.
Why doesn't Mycare set the rates?
Because Mycare is not a party to the care relationship. Also, each individual case is different. It depends on the type of care you are needing. You may decide to give a higher rate of pay because you only require help for a short period of time. Or you may require specialized support that you are happy to pay extra for, knowing the worker has the appropriate skills.
While we don’t set the rates, we do have a good overview on what market rates for different roles are and can provide recommendations. So please reach out if you need help deciding on what is an appropriate rate to pay.
Are there other benefits to hiring independent contractors?
A key reason for choosing contracting over employment is that it takes away the employer/employee relationship.
- You will not be liable for annual leave, sick pay, bereavement leave and other leave payments required by law to employees.
- You are not required to have set hours of work, or set tasks, and can agree with your support worker each week on what is required
- A contracting relationship gives equal power to each party to negotiate tasks and rates.
- A contracting relationship works well where the person requiring care is not capable of fulfilling the responsibilities of an employer (for example health and safety, performance reviews, training)
- The terms of a contracting relationship can be renegotiated at any time. This can be helpful if care situations change suddenly or change based on fluctuating health/support needs.
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