ATO Update on Who Qualifies as an Employee for PAYG Withholding

Posted at 16:43h in Business, News, Superannuation, Tax by Simmons Livingstone

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The ATO has updated its guidance on when a worker is considered an employee for tax and superannuation purposes.

The latest Addendum to TR 2023/4 clarifies:

How the definition of an employee applies under PAYG withholding rules.
How this definition aligns with superannuation guarantee (SG) obligations.
The impact of recent court decisions on determining who qualifies as an employee.

What This Means for Employers

If you hire workers, it’s important to ensure they are correctly classified for both PAYG withholding and superannuation purposes. Misclassifying workers could lead to compliance issues or penalties.

If you’re unsure about your obligations, reach out to Simmons Livingstone at 1800 618 800 or via email admin@simmonslivingstone.com.au.