Issue Taking Many Clients By Surprise – Super Obligations For Independent Contractors
There is a common misconception that companies do not need to pay super for contractors who have an ABN – i.e. sole traders who do not operate under a “Pty Ltd”. If independent contractors are paid mainly for their labour, they are employees for superannuation guarantee (SG) purposes. A failure to pay can have serious consequences, including an obligation to make a large back payment, significant fines and personal Director liability. It’s critical that businesses are on top of this issue. Seek financial or legal advice if you have any doubts. Getting this wrong can be very expensive.