Contractor & Subcontractor Payments

Contractor and subcontractor payments

Businesses that engage contractors or subcontractors may have tax, record-keeping and reporting obligations depending on the nature of the work and the industry involved. The fact that someone sends an invoice does not by itself answer every tax question.

Understand the working arrangement

The actual relationship between the parties can matter when considering tax and superannuation issues. Contracts, working arrangements and the nature of the services should be reviewed.

Taxable payments reporting

Some businesses in specified industries may have Taxable Payments Annual Reporting obligations for certain contractor payments. Whether this applies depends on the business and the services provided.

Keep contractor records

Keep invoices, ABN information, payment records and relevant contracts or agreements. Good records make it easier to prepare reports and respond to questions.

Support for small businesses

StudentTax can help businesses organise contractor payment information and understand the reporting work that may apply to their circumstances.