How Do I Get Paid As A Locum Doctor?

Dear Prescript Doctors,

As the founder of Prescript, I’m dedicated to ensuring that our service excels in every aspect, particularly when it comes to seamless and efficient payment processes for our doctors. Our commitment is to ensure that our clients (hospitals, clinics, and medical practices) and you, our valued locum doctors (consultants, registrars, and RMOs), experience hassle-free payment transactions.

Understanding how you get paid as a locum doctor is crucial. Here at Prescript, we have streamlined the payment methods to four options. In advance of your locum placement, we will confirm which one that applies to you. Skip to the relevant section for an in-depth overview.

1. Paid Directly by the Health Service (Payroll)

2. Paid Directly by the Health Service (Invoice)

3. Paid via Prescript’s Payroll Provider

4. Paid via Prescript (Invoice)

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Paid Directly by the Health Service (Payroll)

What to Expect:

1. Your rate (hourly/daily) is confirmed in your Prescript Locum Booking Confirmation.

2. Details about whether the rate includes superannuation are specified.

3. Payment processes and schedules are confirmed in advance.

4. You will typically submit weekly timesheets approved by the health service

5. ⏰ Send a copy to finance@prescript.com.au by 10 am Monday

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Paid Directly by the Health Service (Invoice)

What to Expect:

1. Your hourly or daily rate will be confirmed in advance by Prescript in your Prescript Locum Booking Confirmation

2. We will ask you about your current business structure - company, trust, partnership, sole trader.

3. We will check it meets the health service requirements ℹ️ please note that most health services prefer to receive invoices if your business structure is a Company (Pty Ltd)

4. Some health services will accept invoices from sole traders. Invoicing as a Sole Trader can result in tax and super obligations for the health service—for example, you may be an employee for superannuation guarantee purposes. This means your daily rate will include super and be withheld.

5. You may need to provide evidence of your business insurance for the health service to review in advance e.g. Public and Products Liability (in your business structure name) + Professional Indemnity Insurance + Workers compensation insurance or Income protection

6. If requested, we can share invoice templates that can be used

7. Timesheets may be required to accompany your invoices; again, Prescript will confirm the process / weekly rhythm with you in advance.

8. ⏰ Send a copy of your invoice to finance@prescript.com.au by 10 am Monday

ℹ️ Any tax or super payments are your responsibility

ℹ️ Prescript cannot advise which business structure you should choose, but we can share the health service requirements. We recommend you talk to your tax, business or legal adviser.

ℹ️ Prescript cannot provide business insurance advice, however we can share the health service requirements. Typically, we see the following requested:

Public and Products Liability
• for at least $20,000,000 for each individual claim or series of claims arising out of a single occurrence
• public & product liability insurance are issued in the name of your business structure, not in your personal name.
• Must be purchased by the business (or contractor), and the business must advise who is working in the practice and the nature of the healthcare provided

Professional Indemnity Insurance
• for at least $10,000,000, for any one claim or series of claims arising out of a single occurrence
• provided to individuals (will be in your name as a doctor)

Workers compensation insurance or Income protection
• (this may be included in your standard medical indemnity coverage)

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Paid via Prescript’s Payroll Provider

What to Expect:

1. Your hourly or daily rate details (and whether the super is inclusive or exclusive), will be confirmed in advance by Prescript

2. Payment will be via Prescript’s expert payroll partners

3. Salary packaging options available

4. Insurances provided: Public and Products Liability, Professional Indemnity Insurance and Workers compensation insurance          

5. We, along with our payroll partners, will guide you through the process / rhythm of being paid correctly and promptly.

6. Typically you will complete a weekly timesheet and have it approved by a Consultant, HoD or Med Admin

7. ⏰ Send a copy of your timesheet to finance@prescript.com.au by 10 am Monday

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Paid via Prescript (Invoice)

What to Expect:

1. Your hourly or daily rate will be confirmed in advance by Prescript in your Locum Booking Confirmation

2. The rate will be + GST (if you are registered for GST)

3. Any tax or super payments are your responsibility.

4. Prescript will confirm the process / weekly rhythm with you in advance

5. Please note that only a Company - Pty Ltd or a Trust can invoice Prescript directly

   • ℹ️ Prescript does not pay invoices from business structures that are Sole Trader, Partnership or some Trusts.

6. You must provide evidence of business insurance: Public and Products Liability (in your business structure name) + Professional Indemnity Insurance + Workers compensation insurance or Income protection.

7. Prescript can share an invoice template that can be used

8. Timesheets may be required to accompany your invoices, again Prescript will confirm the process / weekly rhythm with you in advance.

9. ⏰ Send a copy of your invoice & timesheet to finance@prescript.com.au by 10 am Monday

10. Prescript will need to receive copies of the following insurance:

    • Public and Products Liability
      • for at least $20,000,000 for each individual claim or series of claims arising out of a single occurrence
      • public & product liability insurances are issued in the name of your business structure, not in your personal name.
      • Must be purchased by the business (or contractor) and the business must advise who is working in the practice and the nature of the healthcare provide

    • Professional Indemnity Insurance
      • for at least $10,000,000, for any one claim or series of claims arising out of a single occurrence
      • provided to individuals (will be in your name as a doctor)

    • Workers compensation insurance or Income protection
      • (this may be included in your standard medical indemnity coverage)

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The above is not an exhaustive list, for example, we have not gone through VMoney for NSW Health VMOs. The best thing to do is to talk to your Prescript Recruitment Partner about the payment options for your locum position. We are here to help!

FAQ

Please note: Prescript cannot provide financial advice or advice on business structure, insurance, tax, or super.

FAQ - WHAT INSURANCE DO I NEED?

We always recommend obtaining your own advice about appropriate medical indemnity coverage from an insurance provider.

If you use a business structure to invoice a health service (or Prescript) directly, you may be asked to provide evidence of Public and Products Liability insurance, Professional Indemnity Insurance, Workers’ compensation insurance, or Income protection. Again, get advice so you have the proper protection in place.

FAQ - CAN I INVOICE AS A SOLE TRADER?

Prescript cannot provide any advice on a business structure. We can pass on the requirements of the health services we work with, and many prefer to deal only with a Company—Pty Ltd or a Trust. This means that invoicing as a sole trader is not an option for locum positions at those clients.

Some health services will accept invoices from Sole Traders (this is becoming less available). When you invoice as a sole trader, the health service may have tax and super obligations— for example, you may be an employee for superannuation guarantee purposes. This means your hourly/daily rate will include super and be withheld.

FAQ - I AM VISITING FROM OVERSEAS - DO I NEED AN AUSTRALIAN BUSINESS STRUCTURE?

If you work in Australia for no more than 183 days // 6 months of any given 12-month period, you will most likely be able to invoice using your overseas registered business.

Insurance coverage must be confirmed by the health service you are providing the service to.

For example, sometimes Australian/NZ-trained doctors living overseas decide to do a one-off locum. They can fill in a “Statement by a supplier not quoting an ABN” form from the ATO, which means you can locum with less bureaucratic burden.

Health services must approve temporary ABN waivers in advance (ask first!), and you may need to provide an accompanying letter from your accountant saying you are meeting your tax obligations in your country of residence.

FAQ - Who pays for travel, accommodation and car hire?

Different rules apply to different locum placements. Prescript will clarify travel costs, accommodation bookings, and car hire with you in advance. Top tip: Don’t pay for anything yourself that requires reimbursement without approval in writing!

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I hope this blog helps answer some of your questions and get you ‘locum ready’ with finances.

Best wishes,

James Duque-Hill

Prescript’s Founder & Chief Vision Officer

james@prescript.com.au // 1300 755 498

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“Prescript are medical recruitment specialists.”

At Prescript we’re known for helping solve the regional doctor shortage in Australia.

Every day we’re focused on two clear outcomes - Helping hospitals find doctors that create departments and clinics that run better, have more capacity and less stress. And placing Doctors in jobs that leave them feeling highly valued, rewarded and, most importantly, enjoying what they do.

We believe that when we get these two crucial things right, it has a huge impact on the regional doctor shortage and the healthcare of communities across Australia.

There are three ways to contact us:

1. Call 1300 755 498

2. Email hello@prescript.com.au

3. Click 'Connect with Prescript'

“We’re known for solving the regional doctor shortage, leaving doctors loving what they do and regional communities feeling like they have the best doctors in town.”