Contracts & Remuneration

Manage employment agreements, commission structures, and contractor arrangements for your practice team.

Overview

Praxi supports various employment arrangements:

Type	Description	Typical Use
Employee (full-time)	Permanent, standard hours	Core clinical staff
Employee (part-time)	Permanent, reduced hours	Flexible arrangements
Casual	No guaranteed hours	Relief/locum staff
Contractor	Independent business	Subcontracted practitioners
Commission-only	Percentage of billings	Revenue-share arrangements

Employment Types

Full-Time Employee

Aspect	Standard Terms
Hours	38 hours/week
Leave	Full entitlements
Superannuation	12% (2025-26)
Notice period	Per employment contract
Award coverage	Health Services Award

Part-Time Employee

Aspect	Standard Terms
Hours	Less than 38/week, regular pattern
Leave	Pro-rata entitlements
Superannuation	12% of earnings
Notice period	Per employment contract

Casual Employee

Aspect	Standard Terms
Hours	As required, no guarantee
Leave	25% loading instead
Superannuation	12% of earnings
Notice	Per shift

Contractor

Aspect	Standard Terms
Hours	Per agreement
Leave	Self-managed (built into rate)
Superannuation	Their responsibility
Insurance	Must provide own
ABN	Required

Contract Documents

Praxi provides secure document management for employment contracts and compliance documents. Documents are uploaded to encrypted storage and can be signed electronically.

Uploading a Contract

1. Go to Staff → [Staff Member] → Contracts
2. Click Upload Contract
3. Select the document type
4. Upload the file (PDF, DOC, DOCX, PNG, or JPEG; max 10 MB)
5. Enter the title, start date, and optional end/expiry dates
6. Save

Document Types

Type	Purpose
Employment agreement	Employment terms
Contractor agreement	Independent contractor terms
Confidentiality agreement	NDA/privacy agreement
Professional indemnity	Insurance certificate
Working With Children Check	WWCC evidence
Police check	Background check
AHPRA registration	Registration evidence
Immunisation record	Vaccination records
Other	Any other document

Signing Contracts

Once uploaded, contracts can be signed electronically:

1. Open the contract
2. Click Sign Contract
3. The contract is marked as Active and becomes immutable -- it cannot be edited after signing

Signed Contracts Cannot Be Modified

Once a contract is signed, it is permanently locked. If changes are needed, upload a new version of the contract. :::

Expiring Contracts

View contracts approaching their expiry date:

1. Go to Staff, open the relevant staff member's profile, and select the Contracts section
2. Filter by status to see contracts expiring within 30 days
3. Each entry shows the number of days until expiry

Downloading Contracts

Contract documents can be downloaded via a secure, time-limited link:

1. Open the contract
2. Click Download
3. A secure link is generated (valid for 5 minutes)

Remuneration Models

Salary (Fixed)

Setting	Description
Annual salary	Total yearly amount
Pay frequency	Weekly, fortnightly, monthly
Packaging	Salary sacrifice options

Hourly Rate

Setting	Description
Base rate	Standard hourly rate
Overtime rates	1.5x, 2x thresholds
Weekend rates	Saturday, Sunday rates
Public holiday	Penalty rate

Commission Models

Praxi supports flexible commission structures:

Model	How It Works
Percentage of billings	X% of all invoiced amounts
Tiered commission	Rate increases with volume
Service-based	Different rates per service
Net commission	After deducting costs

Commission Configuration

1. Go to Staff → [Staff Member] → Contract → Remuneration
2. Select commission model
3. Configure rates:

Base commission: 60%
Above $10,000/month: 65%
Above $20,000/month: 70%

Commission vs Wage Split

Component	Calculation
Base wage	Guaranteed minimum
Commission	On top of or instead of base
Cap	Maximum commission amount

Example split:

Scenario	Base	Commission	Total (if $15k billed)
Wage + commission	$4,000	30%	$4,000 + $4,500 = $8,500
Commission only	$0	60%	$9,000
Wage against commission	$4,000	60% (less wage)	$9,000 - $4,000 = $5,000 top-up

Room Rent & Deductions

Room Rental Model

For contractors renting space:

Setting	Description
Daily rate	Fixed daily fee
Hourly rate	Per hour of use
Percentage	% of billings
Minimum	Guaranteed minimum charge

Configuring Room Rent

1. Go to Staff → [Contractor] → Contract → Deductions
2. Add deduction:
   • Type: Room rent
   • Calculation method
   • Rate
3. Save

Other Deductions

Deduction	Description
Admin levy	Practice overhead contribution
Supervision fee	For supervised practitioners
Software fee	Per-user software costs
Marketing levy	Shared marketing costs

Contractor Agreements

Contractor Requirements

Requirement	How to Verify
ABN	Check ABN Lookup
Insurance	Request certificate
Registration	Verify AHPRA
Contract	Signed agreement
Bank details	For remittance

Contractor vs Employee

Praxi helps you correctly classify workers:

Factor	Employee	Contractor
Control	Practice controls how	Contractor controls
Equipment	Practice provides	Contractor provides
Risk	Practice bears	Contractor bears
Delegation	Cannot delegate	Can delegate
Hours	Set by practice	Set by contractor

Classification Matters

Misclassifying employees as contractors can result in significant penalties from the ATO and Fair Work. When in doubt, seek professional advice. :::

Contractor Invoicing

Praxi can generate invoices for contractors based on their approved timesheets:

1. Go to Staff → Contractors → [Contractor Name] → Invoices
2. Click Generate Invoice
3. Select the billing period (start and end dates)
4. The system calculates hours and amounts from approved timesheets
5. Review and confirm the invoice

Contractor invoices are automatically generated on the 1st of each month for the previous period.

Action	Description
Generate invoice	Create invoice from approved timesheets
Download PDF	Download the invoice as a PDF document
Send to Xero	Push the invoice to Xero as an accounts payable bill
Email invoice	Email the invoice directly to the contractor

Expense Claims

Staff can submit expense claims with receipt uploads for reimbursement.

Submitting an Expense

1. Go to Staff → Expenses
2. Click New Expense
3. Enter the expense details:
   • Amount and date
   • Category (travel, accommodation, meals, equipment, software, training, professional fees, or other)
   • Description
   • Upload a receipt (JPEG, PNG, or PDF; max 5 MB)
4. Submit for approval

ATO Compliance Receipts are required for expenses over $75 to comply

with ATO record-keeping requirements. :::

Approving Expenses

1. Go to Staff → Expenses and filter by Pending
2. Review the expense details and receipt
3. Click Approve or Reject (with reason)
4. Use Bulk Approve to approve multiple expenses at once
5. Once approved, mark as Reimbursed when payment is made

Pay Runs

Processing Pay

1. Go to Staff > Commission to review commission entries for the period
2. Review the calculated commission amounts
3. Bulk-approve entries and mark them paid once processed
4. Export or sync to your payroll provider

Pay Components

Component	Description
Base pay	Salary or hourly earnings
Commission	Calculated from billings
Allowances	Travel, phone, etc.
Deductions	Room rent, levies
Tax	PAYG withholding
Super	Superannuation contribution
Net pay	Final payment amount

Commission Calculation

The system calculates commission automatically:

1. Collect all invoices for period
2. Filter by practitioner
3. Apply commission rate(s)
4. Subtract deductions
5. Calculate net commission

Reporting

Contract Reports

Report	Contents
Staff costs	Total remuneration by staff
Commission summary	Commission paid by practitioner
Contractor payments	Payments to contractors
Deductions	Room rent and levies collected
Profitability	Revenue vs cost per practitioner

Practitioner Profitability

Metric	Calculation
Revenue	Total billings
Direct costs	Commission, wages
Indirect costs	Room, admin share
Profit	Revenue - costs
Margin	Profit / Revenue

Contract Renewals

Tracking Expiries

For fixed-term contracts:

1. Set end date on contract
2. System alerts before expiry
3. Review and renew or end

Renewal Process

1. Go to Staff → [Staff Member] → Contract
2. Click Renew Contract
3. Review and update terms
4. Set new dates
5. Send for signature
6. Activate new contract

Compliance

Record Keeping

Praxi maintains required records:

Record	Retention
Employment contracts	7 years after end
Pay records	7 years
Leave records	7 years after end
Superannuation	5 years
Tax records	5 years

Award Compliance

For employees under the Health Services Award:

• Minimum pay rates
• Penalty rates
• Allowances
• Leave entitlements

Praxi can validate rates against the Award.

Best Practices

For Practice Owners

1. Document everything - Written contracts for all arrangements
2. Review regularly - Annual contract reviews
3. Track expiries - Don't let contracts lapse
4. Fair rates - Competitive to attract talent
5. Clear expectations - Documented KPIs and terms

Commission Structures

1. Keep it simple - Easy to understand and calculate
2. Align incentives - Reward desired behaviours
3. Be transparent - Staff can verify calculations
4. Review regularly - Adjust as business grows
5. Consider cashflow - Balance practice needs

Troubleshooting

Commission Incorrect

1. Check billing period dates
2. Verify invoices attributed correctly
3. Review commission rate settings
4. Check for excluded services
5. Verify deductions applied correctly

Contract Not Showing

1. Check start date (must be current/past)
2. Verify contract is active
3. Check staff member assignment
4. Review permissions

Pay Discrepancy

1. Compare timesheet to calendar
2. Check commission calculations
3. Verify deductions
4. Review tax calculations
5. Check previous period adjustments

Who can manage contracts and remuneration

Practice owners and practice managers have practice-wide access to contracts, compensation, and pay configuration — they can view and upload contracts, configure pay rates and commission structures, approve expenses, and generate or view contractor invoices. All staff members can submit their own expense claims. Practitioners, interns, and other clinical staff can view their own compensation details but cannot configure pay rates or access other staff members' remuneration.

Related

• Staff Overview
• Timesheets
• Leave Management
• Team Management
• Financial Reports

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