Record keeping for contractor payroll tax exemptions
If you claim one of the 9 exemptions on payments to contractors, you must keep accurate records to substantiate your eligibility.
We may request these records for a payroll tax review or investigation, so they must be:
- retained at the time the exemption is claimed
- kept for at least 5 years unless we advise otherwise.
Examples of records and evidence include:
- contract or sub-contractor agreements
- scope of works documentation (e.g. work or purchase order)
- tax invoices from the contractor that demonstrate the exemption claimed
- accounting records of payments made to a contractor
- general ledger summaries
- contractor payment summary
- details of the contractors you engage, including their ABN, contact details, business website address and any other published advertising material
- attendance records for the days on which contractors attended your business premises or work site
- WorkCover Queensland (or interjurisdictional-equivalent) policy records.
- Register for a payroll tax seminar.
- Understand the difference between contractors and employees.
- Find out about deductions on contractor payments.
- Use the interactive help to see if a contractor exemption applies.
- Read about relevant contracts.
- Learn about record keeping for payroll tax.