Tradie Bookkeeping Services have a thorough understand of what Trade Services require when it comes to work cover.
Work Cover: a necessary compliance and yet how many people fully understand anything more than the fact that you have to have it or you’re in deep trouble?
Let’s start with subbies: it’s a complex and confusing minefield with regards to compliance if you are unsure of what your obligations are. Just because you hire contractors there are many obligations that you need to be aware of, including Superannuation, work cover and payroll tax. When you engage the services of a contractor is to be sure that they are not, in reality, your employee. One point to consider is if that person is a sole trader, regardless of whether they have an ABN.
If they work like an employee, respond to your direct control and authorisation and are not contracted to produce a specific result, you just might have to treat them as an employee. There are some very harsh penalties associated with what are viewed as sham contracting arrangements, even if you genuinely thought they were legitimate. Always ensure that all payments, arrangements, payments and correspondence are with and through that person’s company and not directly with that person. That’s just the tip of the iceberg, but if you are confused or unsure, Tradies Bookkeeping Services can help you come to a better understanding of your obligations.
Work Cover, Payroll Tax and Superannuation with regards to Sub Contractors / Contractors requires considerable understanding of your actual obligations and it is wise to be very aware of who you engage to work for you and under what guise they fall.
You are required to insure them against workplace accidents with Work Cover Queensland. Work Cover accident insurance is calculated using a wages by rate formula, otherwise known as experienced based rating. Insurance is paid at the beginning of a period and any adjustments are made at the end of that period.
Work cover is complex and there can be changes made to the Work Cover insurance classification over the course of time.
Don’t make the mistake of being caught out by lack of knowledge. Sunshine Coast Traders: contact Tradies Bookkeeping Specialists and let us help you understand your obligations.
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