Penalties and other charges
If you incorrectly treat an employee as a contractor, you can face penalties and charges for not meeting your required employee obligations.
These penalties and other charges include:
- PAYG withholding penalty for not meeting your PAYG withholding obligations
- super guarantee charge (SGC) for not meeting your super obligations, made up of
- super guarantee (SG) shortfall amounts (amount of super contributions which should have been paid into a complying fund)
- an administration fee.
Unlike super contributions, the SGC is not deductible.