I'm currently working as a contractor for one company in the IT field (100% job). My contract does allows me to work for another emplotee.
I'm looking to setup a company and work for another employee (Part time, remote flexible hours contract) in order to pass the PSI rule.
If I want to search for this kind of job, what would be the best you to find it? Seek? Recruiters? Other options?
You also probably want to get the terms right before you embark on something like this. You can work for another "employer" in which case you are the "employee", not that you can work for another employee.
I'm looking to setup a company and work for another employee (Part time, remote flexible hours contract) in order to pass the PSI rule.
The ATO will still hit you up for full employee tax on the first job. They don't give a shit about the PSI rules - they just want their money. I know this from experience.
wtf is PSI
Per Square Inch.
Personal Services Income. You may be a home cleaner working for 10 different households - so you have multiple employers.
Tax Threshold for the other will f you up.
Looks like ATO is increasing its efforts in targeting and clamping down on the PSI issue, with new reporting requirements from 1 July 2019. My company received this letter from ATO last week, which reads:
New reporting for businesses providing computer system design and related services
To whom it may concern,
As a contractor in the computer system design and related industry, there are new tax reportings requirements you need to know about.From 1 July 2019, businesses need to tell us about the payments they make to you for computer system design and related services. Their first report will include payments to you between 1 July 2019 and 30 June 2020.
Another section explains the other side, i.e., any payments to contractors has to be reported. And contractors include subcontractors, consultants and independent contractors working under an ABN.
Therefore, ATO will have exact info about how much you are receiving from the different parties. Regarding your strategy, not sure how effective it will be – if your income is significantly PSI, even if there is a minor component from another party. All depends on how much you work for the other party, how many other parties, and the ATO, I guess.
Not totally familiar with the fine details of PSI since it does not affect me, but here is the detailed ATO info.
Isn't the PSI rule 80%. So, if you are doing full-time at one place, you need to do atleast a days work elsewhere
Wouldn't it be easier just get a payroll place to sort you out?
Doubt it would make any diff to your psi.
If ur doing the lions share for one contractor, 5 days a week, at times they specific, paid a set amount, and not for what you deliver, your an employee for tax purposes and not going the payg route is a risk as if the ato investigate you and win, your up for penalties