What are subcontractor statements and what to do about them?
Q: A NSW business can be liable for the business’s contractor’s liability for NSW payroll tax, wages and workers compensation insurance premiums of the contractor unless the business complies with the subcontractor rules. A: The NSW industrial relations, payroll tax and workers compensation insurance laws potentially expose businesses that retain contractors to the contractor’s payroll tax, wages and workers compensation insurance liabilities. Each of the laws that regulate the obligation to pay wages, payroll tax and workers compensation insurance make a business liable for their contractors wages, payroll tax and workers compensation insurance liabilities in respect only of the work done under the contract if: • the contractor does not satisfy them; and • the business did not get a subcontractor statement from the contractor that relates to the period for which work has been done.
