Hi All,
I have a support worker client who works mainly with NDIS and has paid staff under the high intensity support level, she has not reported to W1 and I can not find a clear answer online as to if it should be or not.
Hi @RebeccaOsborn,
It depends on how the employer is set up.
If a NDIS employer is an individual who has a Withholding Payer Number (WPN) instead of an ABN different rules apply. Employers with a WPN aren't required to use Single Touch Payroll (STP) until at least 30 June 2033, even if their support workers are employees.
If a NDIS employer does use STP (for example, because they operate as a business with an ABN or choose to report voluntarily), the total wages paid are reported at label W1, and the tax withheld is reported at label W2 on the activity statement.
In those STP‑reporting cases:
Where workers are contractors (not employees), your client generally won't need to withhold tax or report these payments at W1, unless there's a voluntary agreement with the contractor to withhold tax.
The key step is to determine whether each worker is an employee or contractor for tax purposes. You can use the employee or contractor decision tool on our website to work through this. Once you've confirmed the employment status, you'll know whether W1 reporting is required.
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