ATO Decision Tool on Use of Contractors
You are here:We often get asked by clients about whether individuals can be engaged as contractors. Its a very complex area, with different tests applied by different agencies and for different purposes. The ATO has a decision tool which will help you meet Tax and Superannuation obligations.
The decision tool is designed to help employers as a tax payer understand whether individual workers are employees or contractors in order to comply with Commonwealth tax and superannuation obligations.
ERS Comment - Use of individual workers as contractors can be a very grey area that exposes many employers to unplanned obligations. We work on the basis that every agency seems to want to turn a contractor into an employee. Unfortunately, it is a very heavily litigated area of the law.
However, you are not powerless in the face of this uncertainty. We have helped many clients over the years in changing their contractor engagement practices to turn shades of grey into black and white. Well, as much as possible anyway.
We can assist you to take a multi-disciplinary approach, calling in a host of external expert resources to assist where their help is needed.
