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The exception to this is contractors who work under a company ABN. Such contractors are not required to have tax withheld from payments that they receive. For more information, see Company Tax Type below. Because LAB payees are subject to PAYG withholding, payments they receive and any associated tax withheld is reported to the ATO via STP. However, payments made to LAB payees are considered business income as opposed to personal income. Because of that, financial year-to-date gross payments made to INB payees are reported in STP as an aggregated gross amount and are not itemised by category of payment in the way that they are for INB payees. LAB payees may have a personal Australian Business Number (ABN). However, their earnings are reported to the ATO under their tax file number and not their ABN. |
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