Contractors will be targeted to ensure that they are not really employees in the eyes of the ATO. Whether a worker is an employee or a contractor depends on the working arrangement and specific terms and conditions under which the work is performed. Factors to consider:

• • Control over work–Contractors can exercise their own discretion how their services are performed unless specified in their contract
• • Independence-Contractors perform only the services as specified in their contract
• • Payment-Payment is dependent on the performance of the contracted services
• • Commercial risks-Contractors bears legal risk in respect of their work and must remedy defects at their own cost
• • Ability to delegate-Contractors can subcontract or delegate their work
• • Tools and equipment-Contractors provide their own tools/equipment

Employers-make sure you categorise and pay your workers correctly.

Please contact me if you need assistance.

Employers that treat their staff as contractors to avoid paying workers superannuation and leave entitlements are on the Tax Office Hit List.

Whether a worker is an employee or a contractor is NOT a matter of choice.

Employers making their workers register as a company or trust structure will NOT result in employers avoiding paying employee entitlements.

Employers: Classify and pay your workers correctly or risk heavy penalties.

Also, make sure you have a current Work Cover insurance policy for them.

 

Please contact me if you need assistance.