Board Members attend bi-monthly meetings and are remunerated a set rate. Are they considered employees?
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Hi @Lachie,
We've decided to check a few things with our experts before replying. We'll get back to you as soon as we can.
Hey @Lachie - We've confirmed everything with our subject matter experts.
Board members of a not-for-profit organisation are considered ‘responsible people’ under the Australian Charities and Not-for-profits Commission (ACNC) framework.
Usually, they are not classed as employees, unless they are also paid to do other work for the organisation outside their board duties.
Whether they are seen as an employee or and independent contractor depends on:
- the type of work they do,
- the agreement they have, and
- how the work is carried out.
This has been discussed on another post, so I'd encourage having a read. If board members are paid sitting fees/board attendance fees, these are treated as directors’ fees.
If the payments are regular and for their board role, they must go through payroll and may be subject to tax and superannuation.