Can you please confirm if we need to pay superannuation for contractors? If not, does the contractor still have to supply a certificate of currency for superannuation?
Generally speaking, employers are required to make superannuation guarantee contributions on a contractor’s behalf if the contract between the employer and the contractor is wholly or principally for labour. This depends on the particular circumstances.
Section 12 of the Superannuation Guarantee (Administration) Act 1992 determines when a person is considered an employee for superannuation purposes so that the employer is liable to make the payment. Often contractors fall into one of these categories.
You may also find the following Australian Taxation Office tools helpful:
- the employee/contractor decision tool helps you work out if a contractor is an employee for super purposes; and
- superannuation guarantee eligibility decision tool helps you work out if they’re entitled to super guarantee contributions.
A certificate of currency is not evidence of the contractor’s contribution to their superannuation fund.