Home – New Forums Money matters sub contractor super obligation?

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  • #990608
    Rking100
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    Hello,

    I have read that if hiring a sub contractor, you may need to pay them super?
    from what i read this is dependant on if the service they provide is mostly for labour? But I am not really understanding it.

    in my situation, I run a home services business, mainly doing home cleaning, rubbish removal and lawn mowing, if I sub contract someone for the lawn mowing, he would be doing his own quoting for the job and will be contact with the client, not me, then I would get a portion of the amount. (he might only get work a few times per week with me) I wouldnt think I need to pay super or anything, is it as simple as him just giving me the portion of money after he has done the job, and would I record the total cost of the job then minus his takings for tax purposes, also, how does using his abn work? I have never used a subby before. a bit confused. thank you.

    #1177836
    Suncoastbuddy
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    The following link is a decision tool from the ato to work out your obligation for tax and super purposes.

    The auditors have used this tool when auditing a couple of my clients from a super point of view.

    I hope it helps.

    https://www.ato.gov.au/Calculators-and-tools/Employee-or-contractor/

    #1177837
    Rking100
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    Suncoastbuddy, post: 207067 wrote:
    The following link is a decision tool from the ato to work out your obligation for tax and super purposes.

    The auditors have used this tool when auditing a couple of my clients from a super point of view.

    I hope it helps.

    https://www.ato.gov.au/Calculators-and-tools/Employee-or-contractor/

    Yes that is exactly what I needed, thank you,

    I also found the calculator that was to determine if I pay the contractor super or not

    (http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=SGEligibility.xr4&go=ok )

    I did both of the calculations and it said he was deemed a contractor and was not entitled to super. thanks again.

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