Source: ATO Website
Date: 11 July 2016
Stating in a written agreement that your worker is a contractor doesn’t mean they are, nor does it protect you from potential penalties for getting it wrong. This is a myth.
The fact is, if your worker is legally an employee, having a written agreement will not:
- override the employment relationship or make the worker a contractor, or
- remove your tax and super obligations.
You need to look at each working arrangement and find out if your worker is an employee or contractor to understand your tax and super responsibilities for them.
So how do you get it right with your workers?
Employee/contractor decision tool
Use our Employee/contractor decision tool to get a quick and reliable answer. The tool will tell you if your worker is an employee or contractor for tax and super purposes and what this means for your business.
Help with employment contracts for nannies
Making sure you have met your employment requirements is one of the more annoying and time consuming part of employing a nanny. Domestic Payroll can help.
We are here to help, assisting with the required payments and keeping track of all your nanny’s time off. Get in touch with us now and find out how paying the nanny can become an easy process including managing the nanny employment contract.