If you are not up to date on your superannuation payments for employees and contractors, now is the time to get yourself sorted. Right now, you can take advantage of an Australian Government Amnesty, which runs until 23 May 2019.
The amnesty is a one-off opportunity to self-correct past super guarantee (SG) non-compliance without penalty.
Do you have to pay superannuation for contractors?
Whether or not you need to pay superannuation on behalf of any contractors will depend on the terms of your contract. You’ll need to pay if:
- You’re paying the contractor ‘wholly or principally’ for their labour and skills
- They perform the contract work personally (ie they’re not permitted to send someone else in to do the job on their behalf)
- You’re paying them for the hours worked, as opposed to achieving a result.
Use the ATO’s Employee/contractor decision tool to double check on the status of your contractual arrangements.
If you need to catch up on superannuation contributions during the amnesty period, you’ll still need to pay full employee entitlements plus nominal interest and associated general interest charges. However, the good news is that you’ll be saved from paying any administration fees and penalties that would otherwise apply. You’ll also be able to claim a deduction for catch-up payments made in the 12-month period.
Even if you can’t repay the outstanding superannuation contributions in full right now, it’s possible to come up with a repayment plan.
For more information click here.
Avoid the Hassle
Ayers can free you from the hassle of maintaining PAYG and superannuation compliance inhouse. Talk to our experts today – we’ll free you up so that you can get back to building your business.