New ATO guidance on “who is an employee?”

ATO Clarifies Definition of ‘Employee’ for PAYG Withholding Purposes

New Ruling Provides Guidance on Determining Employment Status

The ATO recently issued a ruling which explains when an individual is an ’employee’ of an entity for pay as you go (‘PAYG’) withholding purposes.

A useful approach for establishing whether or not a worker is an employee of an engaging entity is to consider whether the worker is working in the business of the engaging entity, based on the construction of the terms of the relevant contract. Importantly, the fact that a worker may be conducting their own business, including having an ABN, is not determinative.

Omnis Group offers affordable, reliable payroll services that not only ensure your business data is up-to-date but also that it’s correctly coded saving you money on your end-of-year financial returns. If you need help with this important issue, please contact our Business Accountants in West Perth on 08 9380 3555.

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