How is the percentage my supplier deducts from me calculated?

Providers: You will notice that when you bill for your clients, the figure includes GST. This is because your supplier is GST registered and must include GST when they invoice ACC.

Your supplier holds the contract with ACC, so all invoicing and payments are between these two parties. Once your supplier receives payment from ACC, they will then process payments received and pay providers. The agreed rate you get paid may differ between suppliers, but the following example is based on a 90:10 split where you receive 90% and the supplier retains 10%.

To calculate how much a provider gets paid, calculations are made using the Net Total (ACC Pay Rate less GST).

Example Pay Rate (with & without GST)

ACC Pay Rate   $ 168.04

GST - $  21.92

======================

Net Total to Supplier  $ 146.12

(90:10 fee split) 10% of Net Total - $   14.61

======================

Net Total to Provider $ 131.51

GST If GST registered + $   19.73

======================

Pay Received if GST registered $151.23

Example Pay Rate & Withholding Tax

ACC Pay Rate   $ 179.66

GST - $  23.43

======================

Net Total to Supplier  $ 156.23

(90:10 fee split) 10% of Net Total  - $   15.63

======================

Net Total to Provider  $ 140.60

Withholding Tax 20% - $   28.12

======================

Pay Received $ 112.48

GST If GST registered + $   21.09

======================

Pay Received if GST registered $133.57