The current OSR Payroll Tax audit activity (read our payroll tax article) prompts us to once again recommend all businesses to review the arrangements they have with their contractors. Contractors are not just an issue for Payroll Tax purposes. They also need to be considered for Superannuation, WorkCover, PAYG Withholding AND FairWork purposes!
Unfortunately, the definitions used for each of these calculations can be vastly different. And given that each of these issues are enforced by a different regulatory body means you need to be across them all. We recommend that it is best practice to review your contractor arrangements at least annually.
If you need assistance reviewing your arrangements, contact us and we can help guide you through the minefield!