Are your contractors really employees?
It's an old chestnut, but the ATO continues to enjoy a high success rate in challenging the treatment of contractors under the superannuation guarantee (SG) legislation.
- Autonomous rather than subservient in their decision making;
- Financially self-reliant rather than economically dependent on the business of another; and
- Chasing profit (i.e. return on risk) rather than simply a payment for time, effort and skill.
- Control
- Whether the worker has been hired to produce a result
- The ability for them to freely delegate work to someone else
- Risk exposure
- Ownership of tools and equipment, and
- The treatment of business expenses, etc.
For more information about your contractor arrangements and ensure you've got the right set up in place, please contact us on 02 9957 4033 or via our website contact form.
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Last updated July 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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Disclaimer
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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