What is meant by 'employment services'?
For WorkCover levy purposes, 'employment services' refers to the activities of providing own workers to others - it should not be confused with 'employment placement services'.
My business is a 'labour hire' firm. Will I have more than one levy rate?
For a particular location, all employment services 'labour hire' employers will have three classifications with corresponding levy rates in respect to 'employment services' activity.
What are the three classifications/levy rate for 'employment services'?
The three classifications and levy rates current from 1 July 2008 (exclusive of GST and bonus/penalty adjustment) are:
- SAWIC 8491 01 Employment services - Category 1 7.50 per cent
- SAWIC 8491 02 Employment services - Category 2 4.40 per cent
- SAWIC 8491 03 Employment services - Category 3 0.90 per cent.
What are the levy rates for 'employment services' prior to 1 July 2008?
For the period 1 July 2007 to 30 June 2008, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 7.50 per cent
- SAWIC 8491 02 Employment services - Category 2 4.50 per cent
- SAWIC 8491 03 Employment services - Category 3 0.90 per cent.
For the period 1 July 2006 to 30 June 2007, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 7.50 per cent
- SAWIC 8491 02 Employment services - Category 2 4.50 per cent
- SAWIC 8491 03 Employment services - Category 3 0.90 per cent.
For the period 1 July 2005 to 30 June 2006, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 7.50 per cent
- SAWIC 8491 02 Employment services - Category 2 4.10 per cent
- SAWIC 8491 03 Employment services - Category 3 0.90 per cent.
For the period 1 July 2004 to 30 June 2005, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 7.50 per cent
- SAWIC 8491 02 Employment services - Category 2 3.80 per cent
- SAWIC 8491 03 Employment services - Category 3 1.10 per cent.
For the period 1 July 2003 to 30 June 2004, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 7.40 per cent
- SAWIC 8491 02 Employment services - Category 2 3.40 per cent
- SAWIC 8491 03 Employment services - Category 3 1.50 per cent.
For the period 1 July 2001 to 30 June 2002, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 5.70 per cent
- SAWIC 8491 02 Employment services - Category 2 2.40 per cent
- SAWIC 8491 03 Employment services - Category 3 0.80 per cent.
For the period 1 January 2001 to 30 June 2001, the levy rates (exclusive of GST and bonus/penalty adjustment) for 'employment services' are:
- SAWIC 8491 01 Employment services - Category 1 6.00 per cent
- SAWIC 8491 02 Employment services - Category 2 2.50 per cent
- SAWIC 8491 03 Employment services - Category 3 0.90 per cent.
My business employs workers engaged in 'employment services' and 'employment placement services'. Can I receive a different classification and levy rate for the 'employment placement services' activities?
In addition to the three classifications and corresponding levy rates for 'employment services', the Corporation, may allow a separation of worker activities relating to 'employment placement service'. Each case shall be assessed on individual merit subject to meeting certain criteria. A written application should be directed to WorkCover Corporation for it to receive appropriate consideration.
Why was the classification/rating system changed and are all employers affected?
The current classification/levy rate arrangements were implemented by the WorkCover Corporation following a review of the classification/levy rate approach applied prior to 1/1/2001. This review identified a number of concerns in consultation with the then Labour Hire Association of SA and Recruitment and Consultancy Services Association. The change was implemented to all identified 'employment services' employers from 1/1/2001.
Do I declare wages for clerical or office workers that I supply to others only under Category 3?
No. Remuneration of such workers is required to be included against the appropriate classification category 1 or 2 or 3 dependent upon the SAWIC Code corresponding to the client's location to which a clerical or office worker is supplied or expected to be supplied.
Will WorkCover check my calculations? What are the consequences if I make an error?
The Corporation conducts levy audits from time to time to ensure the correctness of an employer's levy. In the event of an unexplained classification/levy discrepancy, the Corporation may determine any question as to the class of industry in which an employer employs workers and make a correction to the levy calculation. A fine may be imposed against an incorrect levy calculation.
If my worker has a claim which location do I put on the claim form?
In completing an Employer Report Form in respect to an injured worker, it is the location number which corresponds to the location having been assigned either:
- SAWIC 8491 01 Employment Services - Category 1
- SAWIC 8491 02 Employment Services - Category 2 or
- SAWIC 8491 03 Employment Services - Category 3.
That classification should appropriately reflect the SAWIC Code of the Client location for the relevant period of placement of that worker with that Client.
Which classification/levy rate is to be applied to my other workers who are not supplied to clients, for example, workers engaged in such activities as payroll, reception duties, or other administrative/support activities?
Remuneration of workers engaged in support activity (ancillary unit activity) is to be included with the remuneration of the location which is predominantly served. Normally, the location predominantly served is the location with the greater number of workers and remuneration of workers served. Further information is available from WorkCover Corporation.
The information provided in this publication is correct at the time of printing and is provided as general information only. The specific issues relevant to your employer registration should be considered in light of this general information.