Employer obligations and apprentices

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What are your obligations as an employer?

Individuals you hire as apprentices are your employees – they are not contractors.

If your worker has an Australian business number (ABN), it does not automatically mean they are an independent contractor.

If you employ an apprentice, you must be registered with us for pay as you go (PAYG) withholding. You must also:

• complete the payer section of your apprentice’s Tax file number declaration form (NAT 3092) and send the original to us within 14 days
   
• withhold the correct amount of PAYG withholding from your apprentice’s pay using the PAYG withholding tax tables
   
• report and send the amount you withhold to us
   
• give each apprentice a PAYG payment summary and report the annual amount you withhold to us
   
• keep the necessary PAYG withholding records, such as wage books
   
• pay super for your apprentices.

You may have fringe benefits tax obligations if you provide benefits to your apprentice. Such benefits can include:

• reimbursing them for private expenses they incur
   
• providing a car or van for private use (for example to at home at night).

Remember, if you don’t meet your tax obligations for your apprentices, you may be subject to penalties or prosecution.

More information

• Tax file number declaration (NAT 3092)
• PAYG withholding guide no. 2 – how to determine if workers are employees or independent contractors (NAT 2780)
• PAYG withholding tax tables – weekly rate (NAT 1005)
• PAYG withholding tax tables – fortnightly rate (NAT 1006)
• PAYG withholding tax tables – monthly rate (NAT 1007)
• PAYG withholding tax tables – quarterly rate (NAT 3479)
• PAYG payment summary – individual non business (NAT 0046)
• PAYG payment summary – individual non business guidelines (NAT 3388)
• PAYG payment summary statement (NAT 3447)
• Superannuation guarantee – how to meet your super obligations (NAT 1987)
• Tax basics for small business (NAT 1908)
• FBT – a guide for employers (NAT 1054)

For a copy of any of our publications or for other information you can:

• use our online ordering service, or
• phone 1300 720 092.

If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on 13 14 50 for help with your call.

If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone 13 36 77. If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.

Last Modified: Tuesday, 2 September 2008