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Hiring and Working with Subcontractors

9 Best Practices in Hiring and Working with Subcontractors

The employment environment is always changing as workers consider their options and businesses look for flexible, cost-effective solutions.

Let’s look at some ADVANTAGES of working with independent contractors (or subcontractors).

Independent contractors help you quickly fill skills gaps in your team. This enables business growth without taking on employee […]

COVID-19 test expenses

From 1 July 2021, if you pay for a COVID-19 test for a work-related purpose, you can claim a deduction.

This only applies if you’re an employee, sole trader or contractor.

When you can claim COVID-19 testing

From 1 July 2021, to claim a deduction for the cost you incur to pay for a COVID-19 test, […]

Taxable payments annual report (TPAR)

It’s not just businesses that pay contractors in the building and construction industry that need to lodge a TPAR

The ATO’s taxable payments reporting system (TPRS) is a black economy measure designed to assist the ATO identify contractors who don’t report or under-report their income.

The ATO estimates that around 280,000 businesses need to lodge […]

Electrician’s spark rekindled, fires up owners to sell

Tom and Melissa Muntz owned and ran a successful electrical contracting business for 30 years.

In a typical business-couple style, Tom was customer-facing on the tools whilst Melissa kept the bookkeeping and payroll running smoothly in the office.

Their business operated in an industrial niche market which proved to be lucrative and provided Tom and […]

Paid a tradie or other contractor to help you?

Taxable payments annual report (TPAR)

You may need to lodge a Taxable payments annual report (TPAR) by 28 August each year if you are a:

business providing building and construction services cleaning services for contractor payments from 1 July 2018 (first report due by 28 August 2019) courier services for contractor payments from 1 July 2018 (first report due by 28 August 2019) […]

Key FY21 changes to note from 1 July

Business tax changes for a new financial year

NO TAX DEDUCTIONS IF YOU DON’T MEET YOUR TAX OBLIGATIONS

From 1 July 2019, if taxpayers don’t meet their PAYG withholding and reporting obligations to the ATO, they will not be able to claim a tax deduction for payments:

 of salary, wages, commissions, bonuses or allowances to […]

Do you hire contractors?

When hiring workers, do you understand the difference between contractors and employees for tax and super purposes?

Getting it wrong compromises your ability to meet tax and super obligations, and can mean your workers miss out on employee entitlements.

If your business misclassifies workers, employers can also be caught out with penalties and charges.

Understand […]

Tax deductible ‘non-compliant’ payments

Tax deductibility of ‘non-compliant’ payments about to get the chop

From 1 July 2019, businesses will only be able to claim deductions for payments that are made to workers (employees or contractors) when the employer has complied with the pay-as-you-go (PAYG) withholding and other tax reporting obligations for that payment.

If the PAYG withholding rules require a […]

Important End of Financial Year Actions for You

EOFY reminders – annual tax returns

Another financial year is about to finish! As a business owner, there are many obligations that you need to consider and action just before and after 30 June.

Some of these will help to minimise your tax. Others will reduce your exposure to an ATO tax audit. We have […]