Paying super for independent contractors

If you had to pay super for independent contractors before, you’ll continue to do so under Payday Super.

Payday Super changes when super must be paid, not who is eligible to receive it. This includes independent contractors.

If your business engages independent contractors, now is a good time to check your arrangements.

You’ll generally need to pay super where you’re paying an independent contractor, mainly for their labour, personal effort, skills or time. This can apply even if they:

• have an ABN
• invoice you for their work
• are described as a contractor in a written agreement.

Where an independent contractor is entitled to super, the contribution must:

• be paid for each payday
• reach their super fund within 7 business days after payday.

It’s not mandatory to report payments made to independent contractors through Single Touch Payroll (STP). However, if you choose to voluntarily report these in STP, you’ll need to meet the STP reporting requirements, including reporting qualifying earnings and super liability.

Find more information and examples to help you understand your super obligations at Super for independent contractors.

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Source: ATO