Are Your Contractors Really Contractors?

(getting this wrong could be costly)

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The choice of employing contractors rather than employees, is often seen as a somewhat contentious issue. This is despite the fact that the ATO are quite clear on the delineation between the two, and provide clear guidelines in this regard.

Further to that, the ATO have just announced that from the 1 July 2019, business will be denied a tax deduction for any payments made to contractors who are found to be employees.

To get the deduction, all payments to workers need to comply with the PAYG withholding rules. This means that tax must be withheld and reported to the ATO before payments are made to your employees.

If you are unsure of the status of any of your workers, call us immediately so that we can set things right before 1 July 2019.

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2019-04-01T17:27:59+00:00

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