Just before tax time, my boss is now asking me to sign some agreement saying that I am an independent contractor.
I've gotten around $15k so im under the threshold but im wondering if i will need to pay any additional taxes if I sign this.. Im definetely not a independant contractor – i get a hourly rate of $20
Short answer is don't
Long answer is a long negotiation - he would really need to be paying you a lot more - because if you really are going to be a contractor then you have to factor in the costs related to getting your own ABN, workers compensation and income protection insurance, public liability, tools and clothing and yes - tax and superannuation too.
If your boss is serious about building a genuine business opportunity it's an option - but you'll need financial and taxation advice
If he's just trying to get you to take on all the expenses of having you do the work, then that's a shonky NO WAY
let me clarify this. If you are an independent contractor (with no employee under you), it is not manadatory to have workers comp, income protection insurance correct?
Correct.
There is also superannuation that he should have paid, that's a further 9.5% of your earnings.
Yeah, I'd definitely be confirming that money is actually going into the Super account ASAP. There's got to be something that the company has forgotten about here that's spurred them to go the independent contractor route.
Get a copy of any employment contract you signed as well for posterity's sake.
Sounds like you should look to change jobs, sounds like this boss doesn't like doing things by the book, or for your benefit.
Does your boss have a bumper sticker on their Lamborghini that says:
"My other business is a 7/11"
lol, dont
I thought I was having deja vue until I saw this on Whirlpool too;
http://forums.whirlpool.net.au/forum-replies.cfm?t=2542468&p…
I guess it never hurts to get multiple opinions. I suggest posting to alt.macrame as well.
You need to find a better employer. This employer is shonky as, you cannot just ask your employee to suddenly declare as an indi. contractor. This has to be set out prior to you getting hired.
Sham contracting
Sham contracting is where a person working as an employee is told they are an independent contractor when they’re not. They will also be treated like an independent contractor in some ways, for example they may be required to have an ABN and submit invoices.
Sham contracting is illegal. It’s illegal to:
Sham contracting can be done intentionally or carelessly by an employer. These types of arrangements are sometime set up by employers who are seeking to avoid responsibility for paying legal entitlements to employees.
We can help employees who think they have a sham contracting arrangement. If you think that you might be in a sham contracting arrangement go to Help resolving workplace issues.
Politely say no to your employer, and then start looking for a new job. Exit your position gracefully and try not to burn any bridges.
I recommend going with a company that has actually has a HR department and is capable of operating within the law.
https://www.fairwork.gov.au/find-help-for/independent-contra…