Is it better to use subbies than have employees? Using subbies means you don’t really need to have workers compensation insurance or even worry about the compliance that comes with having troops right?
WRONG! The government isn’t going to make life that easy for you even though Tradie Troopers can.
If a subcontractor doesn’t have their own workers compensation, you may need to make sure they are covered under yours. You may even have to withhold tax from their invoice if they don’t provide you with their ABN.
So, you need to make sure their Tax Invoice has all the things you need to make sure it is compliant. Do you have a copy of their workers compensation insurance or public liability? Are they a company or individual? Does it even make a difference – it sure does!
Have you heard of the Taxable Payments Annual Report? Well you better make sure you know about it. It needs to report an annual amount you pay to every single contractor in the financial year in a report to the ATO by August of every year.
Yes Yes Yes, you’ve heard it before. Tradie Troopers can sort this out too – we’ve got you’re back.