I've been seeing a lot of confusion lately around Payday Super, especially when it comes to independent contractors. The ATO's recent reminders highlight a key point: it's not just about *who* gets super, but *when* it needs to be paid. This is a common trap for business owners, and it's worth a quick check to ensure you're compliant.

Here's the insight: The ATO is clear that Payday Super changes the *timing* of super contributions, not the *entitlement*. This means if you engage an independent contractor mainly for their labour, personal effort, skills, or time, you likely need to pay super for them.

This can apply even if the contractor:

— has an ABN;

— invoices the business for their work; or

— is described as a contractor in a written agreement.

Where an independent contractor is entitled to super, the contribution must be paid for each payday and reach their super fund within seven business days after payday. This is a significant shift from previous rules, where super was often paid quarterly.

It's a nuanced area, and getting it wrong can lead to penalties. If you're unsure about your obligations with any of your contractors, it's always best to double-check. A little proactive review now can save a lot of headaches later.

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