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)
    • interest
    • an administration fee.

Unlike super contributions, the SGC is not deductible.

    Last modified: 13 Apr 2016QC 18176