Contractor or employee: current tax issues for the payer presentation

Published on 06 May 05 by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE

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 presentation 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.

Author profile

Grantley STEVENS

Grantley is a Partner at Edwards Marshall Chartered Accountants. He has over 18 years experience advising many family owned and corporate clients in income tax planning, mergers and acquisitions, CGT, GST and FBT. The industries in which Grantley has had significant experience include building and construction, agriculture, hotel and hospitality, wholesale and retail trade, recreation and entertainment, property and business services.
Current at 10 August 2007

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