Many businesses use contractors to provide flexibility to reduce the tax responsibilities (including payroll tax, SGC and Workcover) which arise when a business is an employer. This paper provides an overview as to when those taxes may be payable irrespective of whether or not the person is a 'contractor' or 'an employee' and the consequences when the employer gets it wrong. The topics include:
- payroll tax
- when will contractor payments be deemed to be subject to payroll tax?
- what other payments are included in the definition of wages and subject to Payroll Tax?
- how the grouping provisions apply when dealing with groups of companies
- Superannuation Guarantee obligations
- when will Superannuation Guarantee contributions be payable in relation to contractor payments?
- Workcover
- employer responsibilities
- remuneration and GST.