| 109 COMMUNITY Kumeu Village Medical Centre: GenPro Kumeū Village Medical Centre continues to provide quality primary health care thanks to a close and committed team of four receptionists, eight nurses, five GPs, a health care assistant, and a practice manager who know their patients and work together to get things done. Historically, many GPs were engaged as contractors. Prior to the Covid-19 pandemic there was a trend towards GP employees, but in the past year we are seeing a trend back to contracting. The MAS Business Advisory Team provides some guidance and advice for GPs explaining the di erence between being a contractor or employee. Contractors As a contractor, you are self-employed. You, or your company, will be engaged by a practice to perform the services of a general practitioner. As a contractor you will invoice the practice for the hours you work/services you provide. You will generally need to be registered for GST, and you will also be responsible for your own tax and ACC levies. A contractor isn’t covered by employment related legislation, so there is no entitlement to any form of leave. You are usually responsible for all work-related expenses such as APC, professional indemnity insurance, and CPD. Because you don’t have these bene its you would expect to be remunerated at a higher rate than an employee and GST would be added to the fees paid to you. As you are self-employed you should have greater control over when and where you work, and how available you want to be. But your contract for service will be for a speci ied time, usually not longer than 12 months, when the contract will either end or be renegotiated. MAS - Guidance and Advice As a commercial contract, either party can terminate the contract as stated in the contract, unlike employment where a fair process is required under employment legislation. As a contractor you have tax obligations as a business, and you should seek advice from an accountant to ensure that you are set up correctly as a business. Employees As an employee you receive all the employment related bene its under the Employment Relations Act and Holidays Act. All the terms and conditions of your employment will be covered in your written employment agreement. Your hours will be agreed at recruitment and any changes to these will be after consultation and agreement. Your income will be agreed at the recruitment stage and probably reviewed on an annual basis. There are obligations on the employer to keep employee records that record your hours of work, remuneration and holiday and leave records. Your employer will pay your PAYE tax. An employee has more security, with less ability for an employer to terminate a contract, but potentially less lexibility. If there is a dispute, you would be protected by the processes of the Employment Relations Act. As an employee you will be required to attend practice meetings and you may be involved in the day-to day management. This article is of a general nature and is not a substitute for professional and individually tailored business or legal advice. ©Medical Assurance Society NewZealand Limited 2022. Our insurance is choice. 6 Underwriting terms and conditions apply. There’s a reason our House, Contents and Car insurance policies have been voted Consumer People’s Choice for six years running. Find out why at mas.co.nz
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