Employee or Contractor …. a costly mistake if your interpretation is wrong

If you incorrectly treat an employee as a contractor, you can face penalties and charges for not meeting your required obligations.

These penalties and other charges include..

  • PAYG withholding penalty for not meeting your PAYG withholding obligations
  • Super guarantee charges for not meeting your super obligations, made up of super guarantee shortfall amounts (amount of super contributions which should have been made into a complying fund), interest and an administration fee.

Furthermore, unlike super guarantee contributions, the super guarantee charge is not deductible.