Item 7: Finalising employee or independent contractor obligations
Your business must continue to meet its obligations until it is either closed or sold to the new owners.
If you are an employer, it is important for you to consider finalising important tax issues for your employees, even though the business is no longer trading or has been sold. These issues include:
- fringe benefits tax (FBT)
- pay as you go (PAYG)
- eligible termination payments.
Your obligations may vary, depending on whether the worker is an employee or an independent contractor.
For more information, refer to the 'When a worker leaves' section of the Employer obligations checklist.
To help you understand whether your individual workers are employees or contractors and meet your tax and super obligations, use the Employee/contractor decision tool.