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  • #983229
    MKBONLINE
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    • Total posts: 14
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    I have been following posts but not posting so often. This is a great place to get expert advise for free.

    I have recently started an IT consulting company. We also do IT Technical Trainings. Most of these training are 4-5 days and are adhoc in nature. E.g There might be a training in May but nothing in June and then again something in July.

    So, I plan to hire trainer as contractors.

    My queries

    1) I want to pay contract trainer full amount and leave Tax and Super obligations to them. So I dont have worry about their Tax and Super but they themselves have obligation to pay Tax and Super to gov. (In past my wife has worked as “Independent Contractor” done freelancing work for an australian company in similiar way where this australian will pay full rate and my wife has tosort out tax and super) Is this possible? Can you advise to good and cost-effective lawyer in Sydney region preferably near parramatta who can help me put employment contract for these trainers ?

    2) Also most of these contract trainers actually work as permanent or contract staff in other companies. How do I legally protect my company as these contract trainers might be working somewhere else as well as work for my company for 4-5 days contract

    Cheers,
    Manish

    #1141232
    PRO
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    • Total posts: 450
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    You need well drafted legal contracts and specific legal and accounting advice.

    #1141233
    KellyB
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    • Total posts: 65
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    The line between contractor and employee is quite a blurred one, and even though you and your subcontractor may view it to be a contracting relationship, others (ATO, workcover, SRO) may in fact see it as an employment contract and there can be significant financial ramifications for your business if you get it wrong. The ATO has a tool to help you decide if you are a subcontractor or employee, might be worth running through it with your own circumstances:
    http://www.ato.gov.au/businesses/content.aspx?doc=/content/00095062.htm&pc=001/003/135/002/001&mnu=0&mfp=&st=&cy=
    Also, please keep in mind that workcover and payroll tax may still be payable on contractors in some situations, their definitions vary from the ATOs.

    #1141234
    MKBONLINE
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    • Total posts: 14
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    Yeah. I am looking for the same here. I am based in Parramatta. Any recommendations?

    PRO, post: 161385 wrote:
    You need well drafted legal contracts and specific legal and accounting advice.
    #1141235
    MKBONLINE
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    • Total posts: 14
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    Thanks for the link. Interesting to note that if I allow my hired temp staff to sub-contract work, then they are treated as “Contractor” but otherwise employee (result from the tool). And if monthly income is more 400 something then I dont have to pay there super as well.
    Super calculator
    http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=SGEligibility.xr4&go=ok

    KellyB, post: 161397 wrote:
    The line between contractor and employee is quite a blurred one, and even though you and your subcontractor may view it to be a contracting relationship, others (ATO, workcover, SRO) may in fact see it as an employment contract and there can be significant financial ramifications for your business if you get it wrong. The ATO has a tool to help you decide if you are a subcontractor or employee, might be worth running through it with your own circumstances:
    http://www.ato.gov.au/businesses/content.aspx?doc=/content/00095062.htm&pc=001/003/135/002/001&mnu=0&mfp=&st=&cy=
    Also, please keep in mind that workcover and payroll tax may still be payable on contractors in some situations, their definitions vary from the ATOs.
    #1141236
    Kennethti
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    • Total posts: 415
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    MKBONLINE, post: 161364 wrote:
    How do I legally protect my company as these contract trainers might be working somewhere else as well as work for my company for 4-5 days contract

    What are you looking to protect your company from?

    Feel free to give me a call – I’m based in Parramatta.

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