How to ensure you’re meeting ATO requirements when hiring contractors
All businesses or companies that hire contractors, as well as the contractors themselves, need to be aware of the Australian Tax Office (ATO) definition of:
- ‘contractor’, as opposed to ’employee’, and
- ‘contractor/client relationship’ as opposed to ’employee/employer relationship’.
Reading these articles will make sure you know everything you need to know about meeting the ATO’s requirements when hiring contractors to work for you, as opposed to paying employees to work for you.
- The difference between an employee and a contractor is clearly outlined here: ATO: difference between contractors and employees.
- The ‘independence’ that your contractors must have (in terms of their relationship with you, their client) is clearly outlined here: ATO: Independence (of contractors).
- The importance of businesses meeting the ATO’s requirements when hiring contractors, and the penalties that can be imposed if they do not meet those requirements, are outlined here: ATO: Don’t treat employees as contractors.
- Your tax and super obligations when hiring contractors are detailed here: ATO: Your tax/super obligations.
- Finally, this is a great source of information about the ‘myths and facts’ about whether someone is technically a contractor or employee, and the requirements of hiring (or being) a contractor: ATO: Myths and facts.
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Sally-Anne Watson Kane
Writer, editor, proofreader, owner/operator - On Time Typing, Editing and Proofreading
Sally-Anne Watson Kane owns and operates On Time Typing, Editing and Proofreading (established as 'On Time Typing' in 2002) and Peewee Press (since 2003). Sally-Anne is a professional editor and full member of Institute of Professional Editors (IPEd) Australia, based in Moe, Gippsland.
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