When a company has 2 entities - one for-profit and one not-for-profit - can the same person be employed under both entities? Both entities are set up with their own ABN's. We are getting conflicting information with some saying the staff need to be kept completely separate and others saying it's no different to having a second job?
Hiya @forrestgump1234 👋
Employment contracts state who the employer of an employee is. It is assumed that the employee has two separate employment contracts, one for each employer? You can be employed by more than one employer at the same time. However, the tax and super obligations are restricted to each payer. That is, the TFN declaration and Choice of Super fund forms are collected by each separate payer.
The employee setup would be different for each employer.
The advice you mentioned doesn't sound "conflicted" to me? Yes, they are separate because the employers are separate and so is the tax and super obligations. Yes, it's no different to having a second job because it IS a second job with a different employer. 😉
Deanne
Hiya @forrestgump1234 👋
Employment contracts state who the employer of an employee is. It is assumed that the employee has two separate employment contracts, one for each employer? You can be employed by more than one employer at the same time. However, the tax and super obligations are restricted to each payer. That is, the TFN declaration and Choice of Super fund forms are collected by each separate payer.
The employee setup would be different for each employer.
The advice you mentioned doesn't sound "conflicted" to me? Yes, they are separate because the employers are separate and so is the tax and super obligations. Yes, it's no different to having a second job because it IS a second job with a different employer. 😉
Deanne
Thanks Deanne! The advice we have received so far is that because the not-for -profit entity is excluded from payroll tax, if they are employed under both, we will need to pay payroll tax under both. To me, it's no different then them having a second job with any other employer and don't understand why payroll tax would be different in this instance.
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