CONTRACTORs under the ATO’s radar
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.
Make sure you can substantiate ALL of your tax deduction claims.
Please contact me if you need assistance.