Welcome to Nudge Accounting, We have over 80+ years of expertise in accounting and bookkeeping services.
Online Bookkeeping & Accounting Services Nudge Accounting

Suite 139/243 Pyrmont Street, Pyrmont NSW 2009

Mon - Fri 9.00 AM - 6.00 PM (AEST)

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TaxTipTuesday: Contractors vs Employees. What do I need to know for tax?

Tax tips, contractors, ato, tax, startups, small business, startups

A common area of confusion for startups and small businesses, is whether or not their new hire is in fact a contractor or an employee. It is important that the difference between a contractor and an employee is clear, as they come with different outcomes and different responsibilities.

Determining whether your new hire is a contractor or an employee

The ATO lists six factors which need to be considered in determining who is a contractor vs employee:

  1. Is your hire able to sub-contract/delegate? An employee can not sub-contract/ delegate and pay someone else to carry out the work, whereas a contractor can.
  2. What is the basis of payment? A contractor is paid for achieving a result, whereas an employee is based on hours worked/commission/price per item.
  3. Who provides the equipment, tools and other assets? A contractor provides the majority of the equipment, tools and other assets they use and doesn’t get paid an allowance for these. Whereas, an employee does not provide the majority of equipment, tools and other assets and in instances where the do, they are reimbursed for these costs.
  4. Who takes the commercial risk? Contractors take on the commercial risks, being legally responsible for their work. An employee on the other hand does not take on the commercial risks which are borne by your business instead.
  5. Who has control over your hire’s work? Contractors, subject to the terms in your agreement with them, can exercise freedom in the way they carry out their work. Whereas, workers are more bound by the employment terms of your business. Contractors operate independently from your startup whereas employees are part of your business.
  6. Is there independence?

Continue reading “TaxTipTuesday: Contractors vs Employees. What do I need to know for tax?”

Contractors and Tax: What is the 80/20 Rule?

contractors and tax, 80/20 rule, startup daily

In our Startup Daily blog post this month, we look at Contractors and Tax and the application of the 80/20 rule.

When you make the big move to go out on your own, you will need to be aware of the tax issues that surround contractors as you could be taxed differently to how you thought you would be. So what are some of the big issues you should be aware of?

What is Personal Services Income?

If 80% of your income comes from one client (including their related entities), you may find that you fall within the Tax Office’s Personal Services Income Provisions. Personal Services Income is where the majority of your income is earned by your personal effort or skill. As an example, think an IT contractor who mainly contracts to one client. Continue reading “Contractors and Tax: What is the 80/20 Rule?”

Contractors vs Employees. What do I need to know for tax?

Contractors, Employees, Startups, Small Business, Shoe String

When it comes to hiring, a common area of confusion for startups and small businesses is whether their new hire is in fact a contractor or an employee.

To make things a bit clearer, I wrote an article this month for leading Startup publication, Shoestring about this very issue. It’s really important to get this right as hiring contractors and employees comes with different responsibilities with different outcomes. So, where do we start on this issue:

1. Is your new hire a contractor or an employee?

The ATO lists six factors which need to be considered in determining who is a contractor vs employee:

  • Is your hire able to sub-contract/delegate? A contractor is able to sub-contract/delegate and pay someone else to carry out the work, whereas an employee is not.
  • What is the basis of payment? A contractor is paid for achieving a result, whereas an employee is based on hours worked/commission/price per item.
  • Who provides the equipment, tools and other assets? A contractor provides the majority of the equipment, tools and other assets they use and doesn’t get paid an allowance for these. Whereas, an employee does not provide the majority of equipment, tools and other assets and in instances where the do, they are reimbursed for these costs. Continue reading “Contractors vs Employees. What do I need to know for tax?”
We Are E.S.T. 2012

Who WE Are

At Nudge, we do it all for your small business: bookkeeping, accounting and tax. we can also help you with tax advice, company setups, personal tax, monthly performance summaries and specialist advice for small business owners. All work is completed by Aussie Accountants so you’ll never have to worry about compliance again.

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TESTIMONIALS

OUR COMPANY

OUR COMPANY Quality

With the uprising of technology and the plethora of competition in the majority of industries, business owners tend to seek help and assistance in managing and tailoring their business to suit the era’s needs and expectations. The process of accounting provides reports that bring key financial indicators together. Understanding financial concepts and gearing clients to financial success is what we exceed at here at Nudge Accounting. Our expertise lingers throughout the field of online accounting and engulfs all financial cases. With years of extensive experience and a dedication for our clients success, we endeavour to evolve our existing methodologies, in order to transform into Australia’s leading online financial firm.

OUR COMPANY Commitment

A successful marriage between bookkeeping and accounting will contribute to the long-term financial success of any business. Nudge Accounting takes pride with their online bookkeeping and online accounting services that encompass all aspects and sectors of finance to ensure our clients receive the utmost finest service. Commitment is an attribute we stand for as client satisfaction is always key to evolution. Our reliability is second to none, as we ensure our clients are well organised and pursuit their financial tasks with accuracy and precision. Nudge Accounting propelled their excellence and with their dynamic team of online accounting professionals transcended competition and have cemented themselves as the leading online bookkeepers in Australia.

OUR COMPANY Success

Our software and technological client interface is meticulous and seldom do alternative online accounting companies acquire this quality of infrastructure. This is what portrays our excellence and gears Nudge Accounting towards success. We ensure client satisfaction, by going through all the details and explaining financial situations to our clients. Engaging the client is what makes us stand out! Online accounting software, combined with online accounting techniques is a much more effective procedure than filling out paperwork because half the work is already done for you! Nudge Accounting take pride in providing the utmost finest online accounting service across Australia, with a variety of small to medium businesses and accounting excellence, technology and Nudge go hand in hand, just like the glove fits the hand!

WE HELPING SMALL BUSINESSES

Nudge provide exceptional accounting service and support whilst remaining price competitive. All of our packages provide the same great features for your small business accounting needs, which includes:

  • Performance Management Reporting
  • Annual Tax Return Preparation and Lodgements
  • Annual Financial Statements
  • Financial Monthly Statements
  • QTR BAS Preparation and Lodgements
  • Monthly KPI's to Identify Improvement Areas
80
YEARS OF
EXPERIENCES
$250m
UNDER MANAGEMENT
REVENUE
$150m
TOTAL
ASSETS
100
% SECURE
CLOUD STORAGE

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