Paying super to contractors

The ATO classifies contractors paid for their labour as employees for superannuation guarantee purposes. This is the case even if the contractor quotes an Australian Business Number (ABN).

Eligibility requirements
Super contributions must be made for these individuals if you pay them:

You do not pay super to a person when you make a contract with someone other than the person who will actually provide the labour, like a company, trust or partnership.

How much to pay
The minimum super amount you have to pay is 9.5 per cent of each worker’s ordinary time earnings. For contractors, employees calculate the minimum super amount on the labour component of the contract. The ATO will accept their market values of the labour if the values of the various parts of the contract are not detailed in the contract.

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