Have you hired people with their own ABN and think you don't have to pay them super?
You could be one of many who think that just because an employee has an ABN and invoices you, that you get out of your employer responsibilities like paying their superannuation and covering them for worker's compensation.
It is very important to understand the difference between an employee and a contractor, and if you are uncertain, its best you find out. This calculator will help you identify whether you have an employer/employee relationship or not.
Australia has the most complex set of employment laws in the world, and this law is no exception. There are a myriad of 'tests' with a number of 'exceptions' that apply to this law, and it can get very confusing. Put simply however, if the person you have 'employed' or 'engaged' works only for you, does not employ other people to carry out their work, uses your tools (or even some of their own) and is not at liberty to make their own decisions as to how and when they do their work, then the chances are; you have an employee and you need to pay their superannuation and cover them for workers compensation.
The ATO are cracking down on this law. Don't be caught out. Give me a call if you need help in determining your liabilities.
Bookkeeper, BAS Agent, Diploma Accounting, I love helping small businesses get their books back in order and create calm out of chaos.