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The Better HR Contract Wizard has been updated to help employers ensure full compliance with Australian laws.

Our Independent Contractor Wizard now includes a question to confirm who will pay any compulsory superannuation contributions.

If an employer fails to confirm who pays super in an agreement they could be held liable for these payments if the contractor is deemed to be an employee for super purposes by the Australian Taxation Office.

Under the ATO definition, if a contractor is paid wholly or principally fors  labour, they are considered an employee for super purposes and entitled to super guarantee contributions under the same rules as employees.

A contract may be considered ‘wholly or principally for labour’ if:

  • you’re paid wholly or principally for your personal labour and skills
  • you perform the contract work personally
  • you’re paid for hours worked, rather than to achieve a result.

We therefor recommend that all employers make it clear in Independent Contractor Agreement who will pay

We recommend you therefore clarify in the Independent Contractor Agreement who will pay any compulsory superannuation contributions.

Update Your Contractor Agreements Now

Login to your Better HR subscription to generate up to date Independent Contractor Agreements now using the Contract Wizard.

Not a subscriber? Need help with HR? Call Better HR on 1300 659 563

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