Provisions
Employment agents are liable for payroll tax on all employment agency contracts that are not contracts of employment between the contract worker and the client. That is, liability arises where the agent has an ongoing interest or role during the period of 'employment'.
If an agent only receives a 'one-off' fee to place a person with an end-user employer under a contract of employment between the contract worker and that employer, the provisions do not apply. This is because the employer of that worker accepts the employer/employee relationship, and is responsible for any liability.
The provisions define an employment agency contract as a contract under which a person provides a contract worker for a client and as a result receives payment, either directly or indirectly. A contract worker includes a natural person, partnership corporation or trust.
An employment agency contract is not a relevant contract under the contractor provisions. This means that none of the contractor exemptions apply.
The provisions apply equally to employment agents and labour hire firms and provide certainty because:
the person who provides the worker is the liable employer
the monies received by the worker are the liable wages
none of the relevant contractor exemptions apply.
