What are the obligations of the employer to the employees and to the contractors? These obligations differ from one party to the other. What brings this difference is the fact that booking tasks and the types of bookkeeping required for the contractors and the employees are not the same. Bookkeepers Melbourne are praised because of the quality of the services that they provide.
Contractor bookkeeping tips
Independent Contractor bookkeeping is said to be fairly straightforward and the reasons for this is because your obligations to the independent contractors is said to be fairly straightforward. In case you want to engage a contractor then the obligations are different in the sense that you are not supposed to engage yourself with their tax or even superannuation. You need not worry about employer super contributions or even payroll processing. But you have to pay the invoices of your contractors.
Employee Benefits accounting
Employees have many bookkeeping obligations and this makes their bookkeeping complicated as compared to the bookkeeping for the contractors. Another thing about bookkeeping for the employees is that it is time consuming. If you have a business and you have many employees it will mean that you will be required to have bookkeeping software that will help you to handle compliance obligations including payroll tax, PAYG payments and even employee super contributions. A good bookkeeper should be one who is able to recommend to you the most appropriate software to use and at the same time he or she should be able to assist you in fulfilling all your obligations.
When is a contractor not a contractor?
It is important to know that the differences in the obligations of the employees and the contractors are not much complicated. What brings the complication is identifying whether one is an employee or a contractor. Australia is one of the countries where bookkeeping is used in all businesses and companies. To differentiate the two these factors will assist you: whether they can delegate or subcontract, can they operate independently, are they the ones that control te way work is done, are they taking a commercial risk and whether they are paid some amount of money for the work they do.
Employee & contractor regulations
It is very important for you to know the distinction rights of the contractors and the employees as this will help you in one way or the other to determine the type of bookkeeping tasks that are of importance to you.
Speak with an expert
The contractor vs. employee is something that we need to take into consideration so that we can be able to survive in any business. Ensure that you are getting it right and if you are not then you need to speak with an HR professional for guidance. For more information about bookkeeping services visit Bookkeeperco.com.au