Computer Industry & Software Industries
There are many unique business and taxation issues for professional service industries which WLM are abreast of, in particular payroll and human resource issues. Other common issues include contractor status, incorporation and creating a saleable business
Employees vs Contractors
Many professional service industries employ contractors and at WLM we ensure your contract arrangements are not a sham. The penalties for incorrectly treating employees as contractors are severe. There can be payroll tax, workers compensation and ATO penalties.
With the reduction in the small business company tax rate and immediate deduction of $20,000 for business equipment for small business until 2017, there is an increased focus by the ATO to ensure contractors are indeed independent contractors and not employees.
This may have substantial implications to those Businesses that utilise the services of contractors as well as the contractors themselves.
At WLM we can advise and assist Independent Contractors to have the correct and most efficient structure and correctly apply the Personal Services Income Rules.
Even if your business meets the personal services income Rules, incorporation may not always benefit the small business professional. The main disadvantages of incorporation include the obligation for workers compensation insurance, additional accounting and compliance fees and division 7A loan issues. Some of the advantages of incorporation are asset protection, deferred taxation , the small business company tax rate and the potential to benefit from division 7A loan rules. At WLM we will ensure your business structure meets your needs.