Webinar 3:

Payroll Tax Contractor Provisions

Payroll Tax Webinars

Webinar One Understanding the basics –what it is, how it works

Webinar Two Allowances, FBT, exemptions and rebates

Webinar Three Contractors

Webinar Four Groupings

Agenda

• Employee v Contractor

• Contractor provisions

Employee V Contractor

Totality of the relationship

Formation/terms of Contract

Control

Leave entitlements

Delegation Risk

Integration

Tools, materials, equipment

Super

PTA-038

Employee V Contractor

IS THE WORKER AN EMPLOYEE?

Contract include labour?

Contractor provisions irrelevant

NO

Does an exemption apply?

Payments are taxable

Payments are exempt

YES NO

YES

NO

YES

No payroll tax

Employee V Contractor - WA

PT 6.1

Subject to payroll tax

Deemed to be employee

Not assessable for payroll tax

Bona fidecontactor

PTA-019PTA-018

Contractor Provisions

Full amount paid to the contractor

GST

Approved deduction

Taxable Wages

less

less

Employee V Contractor

IS THE WORKER AN EMPLOYEE?

Contract include labour?

Contractor provisions irrelevant

NO

Does an exemption apply?

Payments are taxable

Payments are exempt

YES NO

YES

NO

YES

No payroll tax

Contractor Provisions

Owner Drivers

Insurance Agents

Door-to-door sellers

90 Days 180 Days

Engaging others Labour ancillary

Services not ordinarily required

Services rendered to the public

Three Specific Six General

Contractor ProvisionsIndustry Specific

Owner Drivers

Three Specific

Insurance Agents*

Door-to-door sellers*

PTA-007PTA-006*these exemptions do not apply in the Northern

Territory, New South Wales and Western Australia

Contractor Provisions90 days

The contractor works for a principal for no more than 90 days in a financial year

Exempt where

PTA-035v2

Contractor Provisions180 days

The services are ordinarily required for less than 180 days in a financial year

Exempt where

PTA-020

Contractor ProvisionsEngage Others

The contractor engages others (contractors or employees) to complete some or all of the work that is the object of the contract

Exempt where

PTA-023

Contractor ProvisionsLabour Ancillary

The labour is ancillary to the supply of materials and/or equipment

Exempt where

PTA-033

Contractor ProvisionsNot Ordinarily Required

The services are of a type not ordinarily required by the principals business and are performed by a person who

ordinarily performs services of that kind to the public generally.

Exempt where

PTA-022

Contractor ProvisionsDiscretion

The services are ordinarily rendered to the public generally in a financial year

Exempt where

PTA-021

Payroll Tax Webinars

Webinar One Understanding the basics –what it is, how it works

Webinar Two Allowances, FBT, exemptionsand rebates

Webinar Three Contractors

Webinar Four Groupings

Further information

payrolltax.gov.au

NSW SA VIC QLDosr.nsw.gov.au1300 139 815

revenuesa.sa.gov.au08 8204 9880

sro.vic.gov.au13 21 61

osr.qld.gov.au1300 300 734

NT TAS WA ACTtreasury.nt.gov.au

1300 305 353sro.tas.gov.au03 6166 4400

osr.wa.gov.au08 9262 1300

revenue.act.gov.au02 6207 0079