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Contracting for a US based company

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Hi,
I'm speaking to a US based company, so that I can do some contracting work from here in Sydney. Wondering if you could provide any guidance on the things I should have in place to ensure I get paid without any delays.
Thanks
Joseph
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ATO Certified

Devotee

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Hi @josephmundadan,

 

Thanks for your post! There's a few things to consider here, so we've included links to helpful content to make it easier for you to find all the relevant info.

 

  • Firstly, contractors have different tax and super obligations to employees. If you're a contractor, you'll be running your own small business and may need to apply for an ABN and manage your own tax and super payments. Our guide for contractors has a tool that helps explain the differences between employees and contractors.
  • If you are a contractor, you may also need to register for certain tax roles like GST and pay as you go instalments. We have info to help small businesses get started here, and business.gov.au also has a range of handy guides on planning, starting and managing new businesses.
  • Once you've worked out where to get started, you'll also need to consider factors like international tax agreements, foreign exchange rates and how to report foreign income apply to your situation. It's definitely worthwhile asking the company in the US whether they have experience hiring contractors in Australia and seeing if they have any support mechanisms in place to help you out.
  • You'll also need to report your income and complete your income tax return differently as a sole trader/contractor. Our guide to income and deductions for business is really handy, and you can find more detailed information on completing item 15 Net income or loss from business here.

You might also decide it's worth talking with a registered tax or financial advisor to help you get started. Find a practitioner in your area by searching the Tax Practitioners Board register.

 

Best of luck!

1 REPLY 1

Best answer

ATO Certified

Devotee

Replies 0

Hi @josephmundadan,

 

Thanks for your post! There's a few things to consider here, so we've included links to helpful content to make it easier for you to find all the relevant info.

 

  • Firstly, contractors have different tax and super obligations to employees. If you're a contractor, you'll be running your own small business and may need to apply for an ABN and manage your own tax and super payments. Our guide for contractors has a tool that helps explain the differences between employees and contractors.
  • If you are a contractor, you may also need to register for certain tax roles like GST and pay as you go instalments. We have info to help small businesses get started here, and business.gov.au also has a range of handy guides on planning, starting and managing new businesses.
  • Once you've worked out where to get started, you'll also need to consider factors like international tax agreements, foreign exchange rates and how to report foreign income apply to your situation. It's definitely worthwhile asking the company in the US whether they have experience hiring contractors in Australia and seeing if they have any support mechanisms in place to help you out.
  • You'll also need to report your income and complete your income tax return differently as a sole trader/contractor. Our guide to income and deductions for business is really handy, and you can find more detailed information on completing item 15 Net income or loss from business here.

You might also decide it's worth talking with a registered tax or financial advisor to help you get started. Find a practitioner in your area by searching the Tax Practitioners Board register.

 

Best of luck!

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