Hi, I’m looking at buying a business where the distribution base is contractors. I’ve had a looking at the contractors existing agreements and there is no mention of super entitlements which is a concern for me if I take it on and find out later that there should be. The contractors aren’t employees but should the business be paying their super?
Employee vs Contractor is a topic which is quite painful at times. If you can email me directly on firstname.lastname@example.org I can send you a comprehensive fact sheet that you can go through to be sure of your situation.
You need to apply a common law test to decide on this matter. Most important aspect to consider according to me is about the control & exclusivity.
As i mentioned above, i can send you some information in an email if you need which will be helpful for you.
Look up iCare Wages Definition Manual 2018. Look at "Deemed Workers".......this is what will determine how much pain you are in for.........
I refer to it as the "Duck Test": if it walks like a duck and quacks like a duck, chances are its a duck, right? Same goes for a deemed worker: if he turns up when you tell him to, and does what you want, and goes home when you tell him to, chances are he is a deemed worker, no matter what you call him in your tax return.
this is a workers comp definition, but the ATO have applied exactly the same tests as these for the purposes of Super Guarantee.
By the way, I give you a solid gold guarantee that if you get a super guarantee audit from the ATO, and they decide your subbies are "deemed workers"; you might as well put the kettle on for the workers comp audit because they will be coming to visit
Get some advice on this so you know what you are signing up to.