Employer obligation field audits

Last year the Australian Government announced a four year program to address unfair competitive practices by employers seeking to avoid pay as you go (PAYG) withholding and superannuation obligations.

Some employers have been incorrectly treating employees as contractors, or have been pressuring them to obtain Australian business numbers (ABNs). Using the ABN registration system to mask employment arrangements is 'sham' contracting and is the focus of audit activity.

During field audits the ATO are examining the status of workers, PAYG withholding and superannuation guarantee compliance.

You may consult the ATO's employee/contractor decision tool to confirm the status of your workers by clicking here.