Hi. My friend recommended a company for tutoring. I agreed to tutor a small group of children for an hour on the weekend with options for more hours. My friend never mentioned an ABN and the work is at the company premises and they supply resources. They want me to start tomorrow, but when I said I would bring in my bank details and TFN they asked if I had an ABN and when I said no and asked if I should still come in, they said they might employ me casually in the future and for now would just put money in my account. I want to meet my tax obligations and said I will come in tomorrow, but am seeking tax advice. I do not want to start my own business for $40 a week! I haven't signed anything so have no obligation to work for them. I know it's their responsibility if they registered students and took payments from parents before I officially worked for them and without asking if I had an ABN, but I still feel guilty! Any advice?
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Honestly you sound like an employee and not a contractor.
If you were a genuine contractor - then you might want to have an ABN. The tutoring company probably thinks itll save on the compliance work vs if you are treated as an employee - but it doesnt work when its essentially a sham arrangement - aka when youre actually an employee and theyre trying to brand you as a contractor. The law looks at the "substance" of the relationship and not what label you slap on it.
With the amount of money you are earning, you'll probably be under the tax free threshold - and possible even the SG threshold. Just make sure they give you a payslip with the details on a regular basis (aka. when they do payroll).
Either way I wouldnt sweat it.
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Honestly you sound like an employee and not a contractor.
If you were a genuine contractor - then you might want to have an ABN. The tutoring company probably thinks itll save on the compliance work vs if you are treated as an employee - but it doesnt work when its essentially a sham arrangement - aka when youre actually an employee and theyre trying to brand you as a contractor. The law looks at the "substance" of the relationship and not what label you slap on it.
With the amount of money you are earning, you'll probably be under the tax free threshold - and possible even the SG threshold. Just make sure they give you a payslip with the details on a regular basis (aka. when they do payroll).
Either way I wouldnt sweat it.