Did you know a NSW business can be liable for your Subcontractors Payroll Tax, Wages and Workers Compensation premiums?
The NSW industrial relations, payroll tax and workers compensation laws potentially expose businesses to the Subcontractor’s payroll tax, wages and workers compensation insurance liabilities.
They can make a business liable in respect of work done under a contract if:
- the subcontractor does not pay them; and
- the business did not get a Subcontractor Statement from the Subcontractor that relates to the period for which work has been done.
A Subcontractor Statement is a contract between a Principal Contractor (yourself) and a Subcontractor. A completed and signed form helps protect you from the Workers Compensation premiums, Payroll Tax and Wages due or payable by the Subcontractor.
If you engage Subcontractors, we highly recommend you have them complete a Subcontractors Statement for each invoice, which can be downloaded from here:
https://www.revenue.nsw.gov.au/help-centre/resources-library
This completed and signed document should be accompanied by the Subcontractors relevant Workers Compensation Certificate of Currency and kept for 7 years.
