The use of contractors by small and medium businesses has received significant media attention recently, with the ATO winning a number of cases involving the Superannuation Guarantee Charge. These cases highlight the need for all businesses to carefully consider their contractor relationships, for the purposes of SGC and also a range of other taxes.
This event looked at how to distinguish between an employee and a contractor. It covered the key factors to take into account and monitor such as the structure of the arrangement. This is an important step to determine the impact on the various employment taxes which may arise.
The following was covered:
- superannuation - who is responsible for super, and what happens if you get it wrong?
- payroll tax - how wide is the definition of "employee' across the different jurisdictions?
- PAYG withholding - interaction with ABNs and GST tax invoices
- fringe benefits tax - who is liable in a contractor relationship?
- workers compensation.