The definition of ‘employee’ and ‘employer’ varies across different laws. For payroll tax, superannuation, workers’ compensation, and other areas, there is a concept of deemed employment for some contractors’. Deemed employment refers to a situation where a contractor, despite being independent in nature, is considered an employee for certain legal and tax purposes.

Understanding the rules and guidance that apply to these situations is crucial. It empowers you to review the nature of the relationship and the actual contract, thereby determining whether there is an employment relationship.

It’s important to note that these definitions will differ from the Fair Work Commission’s definition of employment relationship. This blog [and the ones linked below] do not cover the application of Fair Work rules or the Industrial Relations side of things generally.

As a business owner and employer, it’s your responsibility to correctly classify your workers for tax and super purposes. Getting it wrong could lead to penalties, so it pays to be cautious and do your due diligence.

I break down the common contractor misconceptions with MD, John Knight in this edition of In the Loop below.

 

 

key areas to review when assessing contractor risk [click one to learn more]:

superannuation
Payroll Tax
Workers’ comp

 

 

The legislation around contractors varies between states, so please ensure you check the arrangements in your jurisdiction. Our blogs focus on NSW and QLD, but if you have workers in other states, you need to review those obligations too.

It’s critical that you get your contract right to avoid any unexpected tax or compliance issues.

 

Co-authored by MD, John Knight.

 

we’re here to help

If you have any questions, please reach out to your usual contact at businessDEPOT. You can also give us a buzz on 1300BDEPOT or  and our team will be happy to help.

 

get more insights

If you found this article helpful and you’d like to get more information, you can sign up to our mailing box here!