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You are potentially liable for your contractors' unpaid Workers Compensation Premiums, Pay-roll Tax, and Employee Remuneration |
From 1 July 2003, if you: |
- engage contractors to carry out work under a contract; and
- workers compensation premiums, pay-roll tax and employee remuneration are unpaid by the contractor; and
- you do not obtain a Subcontractors Statement in the prescribed form for the whole period of the contract
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then |
- you will be liable for any unpaid workers compensation premiums, pay-roll tax, and employee remuneration payable by the contractor.
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A Subcontractors' Statement is required each time a payment is made for work done in connection with the contract and should cover the period of work to which the payment relates. The Subcontractor Statement must have attached to it a Certificate of Currency of the contractors workers compensation policy covering the period of the payment. |
If the Subcontractors' Statement is not provided, you can withhold payment. Effective immediately, you should require all contractors, subcontractors, and consultants, as a condition of payment, to provide a Subcontractor's Statement with every invoice or payment claim. |
All people contracting with consultants, contractors or subcontractors need to get immediate legal advice about this significant new legal and commercial risk. |
Please contact us for advice or to obtain the required Subcontractors' Statement form. |
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