Are your doctors working as sole traders?
Are you paying super for your sole trader doctors?
We know many medical practices are still not compliant and not paying super for their doctors engages as sole traders. This is now on the ATO’s hit list
The doctors will continue to work as they do now but they will be engaged via a medical contractor solution.
This means they will have their super paid, work cover in place and also get more in their hand. No risk to the clinic any more.
You will just receive an invoice to pay and know that everything else is covered for your doctor.
No need to worry about the ATO knocking on your door.
Dr Singh had been working as a sole trader in a busy private billing clinic and invoicing the clinic for $292,320 over the course of the year. The clinic paid Dr Singh the full amount and did not pay any super, relying on Dr Singh to pay his own super. Dr Singh ended up with $148,796.76 in the hand after doing his BAS’s, paying installment tax and contributing to his super fund. Although the clinic’s accountant has informed them that they must pay super on all of their sole traders they didn’t want to rock the boat. They knew Dr Singh was definitely contributing to his super fund. When they heard about another clinic being investigated by the ATO for non payment of super they contacted Power Pays.
Dr Singh now works in the same clinic doing exactly the same work but is now engaged through a medical contractor solution. Dr Singh now receives super guarantee, his payg tax is paid for him, he is covered by work cover and he gets to salary package again. He no longer has to do BAS’s, pay installment tax, invoice or worry about his paper work. He is now an employee. The best part is he ends up with $21,723.61 more cash in hand (a total of 170,493.60 per year) and far more time to spend with his family and friends and get some balance back into his life.
The clinic is super happy as they no longer have the risk if the ATO knocks on their door, everything is simple and easy and they have a very happy doctor.