• 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