BRIBIE ACCOUNTING SERVICES

CONTRACTORS UNDER THE ATO’s RADAR

Contractors will be targeted to ensure that they are not really employees in the eyes of the ATO. Whether a worker is an employee or a contractor depends on the working arrangement and specific terms and conditions under which the work is performed. Factors to consider:

• Control over work-Contractors can exercise their own discretion how their services are performed unless specified in their contract

• Independence-Contractors perform only the services as specified in their contract

• Payment-Payment is dependent on the performance of the contracted services

• Commercial risks-Contractors bears legal risk in respect of their work and must remedy defects at their own cost

• Ability to delegate-Contractors can subcontract or delegate their work

• Tools and equipment-Contractors provide their own tools/equipment Employers-make sure you categorise and pay your workers correctly.