Tell me about sub-contracting

[Marley&Me]

What exactly does it mean? That you just have to pay your own tax? What else is involved?

Situation: Boss pays you, but you need to take out your own tax because you are sub-contracted. Is it that simple?

[Phteven]

There are also issues of liability and superannuation.
I wouldn't subcontract without public liability insurance in place and I wouldn't hire a subcontractor without it.
Worker's comp too.

[Marley&Me]

Hmm, sounds complicated. So you need to pay your own super too, yes?
What is public liability, exactly?

[Phteven]

Yes. If you sub-contract you need to pay your own super.

Public liability is in case some loser decides that their stupidity is your fault and sues you. Don't assume that because you are honest and competent you won't be sued. People have sued cafes for serving them coffee that is hot

[Marley&Me]

Oh ok. I guess that's when they had to start putting 'caution hot' on all their lids

Thanks

ETA: Thanks traveller, just saw your post.

[wysiwyg]

Depending on what you do you can go through a contracting house (very common in IT) so they sort all the insurance etc, work out your pay etc all for a small fee and then there really isn't anything else to do on your part. When I have contracted a couple of times and DH too we have both done that because wasn't worth the hassle for the short-term contracts we were doing.

[Traveller]

You need to pay your own insurance, super, public liability, etc. You also need to register for GST if you earn above a certain amount and there is a heap of paperwork. It's a nightmare TBH but you earn more than as an employee, especially if you have a good accountant.

Actually that's the best start. Get a good accountant and discuss it.