Do you employ or engage Sportspeople, performers, filmmakers?

If you’re engaged as a musician, entertainer, sportsperson, filmmaker, or a performer, then you are eligible to be paid the super guarantee (SG). If you engage one of these eligible individuals, you may also need to make super guarantee (SG) contributions for them.

You must pay SG contributions on payments you make to an individual for:

  • playing sport, performing or presenting music, dance or entertainment, undertaking promotional activities, or an activity involving similar skills
  • providing services connected with the above activities (this means providing services that are required for the above activities to occur
  • making a film, tape or disc, filming or recording any television or radio broadcast, or providing services that are required for that filming or recording to occur

Payment of SG contributions for the above services is required even if an individual:

  • is not a professional
  • has an ABN
  • issues invoices
  • is engaged on a one‑off basis
  • refers to themselves as an independent contractor
  • is a hobbyist
  • provides you with a Statement from Supplier Form (some industries refer to this as the hobby form)
  • is retired or receiving a super pension or annuity while working (this includes employees on transition to retirement)

Your super guarantee obligations do not depend on the size or nature of the engagement. A community organisation hiring performers for a local arts festival has the same super guarantee obligations as a private business. However, the type of payer can make a difference if the performance is of a private or domestic nature.

Generally, for super guarantee purposes, your super contribution for the individual must be received by the individual’s super fund within 7 business days after payday. This is extended to 20 business days after payday for first time or recommenced contributions.

When don’t you have to pay super?

To know when super is payable, you need to ensure you know who you’re paying and in what capacity.  You only have super guarantee obligations for payments you make to people entering arrangements in their individual capacity.  This means if you’re engaging a partnership, company or trust, you do not have any obligation to pay the super guarantee.  An exemption also applies if you engage an individual under a domestic/private nature and the individual is paid for less than 30 hours of work per week.

As you can see from the above, knowing when to pay super when engaging an individual for the above services, can be a minefield. As always we’re here to help you understand this complicated legislation.

 

Author

Kim Jay