Do you use your own company to contract and if so
you probably don’t pass the Australian Taxation Office’s PSI rules?
Most IT Contractors do not pass the ATO’s personal services income rules (PSI rules)and need to be treated as an employee. Many contractors believe they are doing the right thing when they set up their own company to do IT Contracting work. This is not necessarily the case and they could be facing large penalties from the ATO.
Most Recruitment Agencies are now being asked to supply the details of each company they make payments to. This means at some point in the ATO will be assessing if your company fails the PSI rules and the repercussions for you are high if your found to have failed. Most people mistakenly think it is just a matter of the 80/20 rule. This is wrong!
Click here to see if you comply.
Power Pays is here to maximise your earnings through compliant salary packaging and to take the risk and burden off your shoulders.