ustralian Taxation
For business when looking to take on someone to work for them it is important that we correctly engage them as either an:
- Employee
- Contractor
Government agencies ei the ATO, Return to Work, Fair Work all take an active interest in how someone is paid either as a contractor or an employee.
Whilst taking one someone as a contractor can be an easy option initially or for a short period, if they should have been an employee or circumstances change then this can have adverse conditions for the business including:
- Superannuation
- Leave entitlements
- Employee taxation
Sadly I have seen what was initially friendly parties agree to work as contractors and then years later due to a dispute or other circumstances contact Fair work or the ATO to claim superannuation and other benefits.
Getting the engagement right from the start is important.
Reviewing the engagement on a regular basis is important to make sure that the arrangement complies with the relevant laws.
