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Re: PAYG for casual contractor

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Newbie

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Hi,

 

My wife is running a business as sole trader. From this month, she started taking help from a person for her business as a casual contractor. She pays to him on hourly basis as and when he needs to work for her business ( around 4-5 hrs in a week). He is international student and not working anywhere else at the moment. Is it required to withheld PAYG while making him the payment? If yes, then what is the process for that?

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ATO Certified

Community Support

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Hi @eksachin

 

Thanks for your post.

 

Based on the information that you have provided, @TaxedoMask is probably correct. In saying that, your wife should first check whether their worker is an employee or contractor because there are different obligations depending on the situation.

 

For more information, check out the employee or contractor section of our website.

 

If your wife isn't sure about their worker's status, we have some information on how to work it out on our website. The page also contains a decision tool that they can use.

 

Your wife's obligations are outlined on the your tax and super obligations page. For more information:

 

Hope this helps.

 

Thanks, ChrisR

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Devotee

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Yes - lodge a BAS.

For how much to withhold see here.

 

 

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @eksachin

 

Thanks for your post.

 

Based on the information that you have provided, @TaxedoMask is probably correct. In saying that, your wife should first check whether their worker is an employee or contractor because there are different obligations depending on the situation.

 

For more information, check out the employee or contractor section of our website.

 

If your wife isn't sure about their worker's status, we have some information on how to work it out on our website. The page also contains a decision tool that they can use.

 

Your wife's obligations are outlined on the your tax and super obligations page. For more information:

 

Hope this helps.

 

Thanks, ChrisR