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Payroll tax on payments to contractors

April 08, 2019

Payments made to contractors and subcontractors may be liable for payroll tax. Even contractors that you believe don't meet the ATO’s employee test for tax and superannuation purposes may still be caught by the state payroll tax. HIA has become aware that a number of members have recently been selected to provide information regarding state payroll tax. Providing this information is very time intensive. If selected the company is generally required to go back 5 years and analyse all contractor payments made to see whether they are eligible for state payroll tax.

From 1 March 2019, the Queensland Office of State Revenue’s (OSR) compliance program is focusing on contractor payments. You can find out more about payroll tax on payment to subcontractors. Read more here: Payroll tax on contractor payments. HIA encourages members to make sure their records are kept up to date and in an easily retrievable format