Independent contracting is a standard business practice, and many people
and businesses are taking advantage of the same. Now days, it is trendy and
most popular in all around the world. A small business or start-up or government
office engage independent contractor to do his work.
Independent contractor is also stated as self -
employed. But there is critical point to hire an independent contractor is contractor
agreement. It is the back bone of the relationship between independent contractor
and business. In it, the entire clause of fee like monthly, hourly, weekly is specified.
In agreement, form of commission was also including which help later to
negotiate with client if he is not pay.
Independent contractor are not
actually employee but they receive their payment according to the business work.
Independent contractor are not placed
as employee payroll, so they need to give entire invoice to the client he
performed work and his engage client pay him through account payable.
There are special tax rules for independent contractors:
a) Tax file number: Unique number
issued by ATO (Australian Taxation Office)
b) Australian Business Number helps to
run business
c) Good and service Tax
d) Personal Services income.
e) Payroll Tax
The idea to engage independent
contractor to do outsourced work is cost & time effective. Independent contractor
work in various industries, like broker, manufacture, consumer product and many
more but they only focus on work and have no time to manage their finance. For
this Certica, offer service to manage your finance and the payment you received.
And his certified contractor administration system provide compliance with ATO
and other taxation service to make your contractor ready
