I completed my term at company x as a contractor and got an amount as a payment at the end of the tenure. The way my boss told me its because "you decided to stay with us, until the company thought my services were no longer needed".
Does this qualify as an ETP? (for tax filing purposes)
Definition of ETP here: https://www.ato.gov.au/Individuals/Working/Working-as-an-emp…
like a bonus of sorts for staying till the end. its almost like a redundancy but because Im a contractor does that still count?
Being a contractor has no relevance. Refer back to first question above and look through the list in your link. Check your payslip or your ex-employer to see what you were were exactly paid for. Is it a bonus payment(non-ETP)? Or a genuine redundancy payment(ETP)? If in doubt, consult an accountant.
You're a contractor. You aren't employed by the company, you are doing contract work for them. So I would say no.
Thats how I see it anyway.
Line between contractor and employee is no longer clear, refer here. Most times a contractor is actually deemed an employee so should be treated as such for superannuation guarantee, payroll tax, PAYG and other employer obligations.
Except OP specifically says they were a fixed term contractor.
Fixed term contractor is still an employee in the eyes of ATO.
@trex: Yes but in this case, OP would be (very possibly) an employee of the job agency and not the company here.
@HighAndDry: Good point but if he receives a payment from the company, it will still in the capacity as an employee making him having dual employment.
How were you engaged and hired?
Are you a sole trader or employed by a professional services company?
How were you paid - via a separate payroll company or directly by the employing company?
Were you paid super?
Did you supply your own tools - phone, laptop etc
Hired
Professional services company
Via the contracting agency
Super yep
Nope
No
No
As I understand it* ETP are really for redundancies so they are treated specially for tax purposes.
*not tax advice
Based on what you have provided this will be treated as simple income by the ATO. Bonuses, retainers, contractual "pay outs" are not ETPs.
I've gone through two redundacies. The employer will report it as an ETP if it is indeed one - not up to you. It will show as such in your payslip and in your end of year payment summary which you then use to fill out your tax return and reap the benefits of an ETP payment. I've also been a contractor. That's why employers hire ppl as contractors - no leave entitlements, no termination payments (flexiblity to get rid of labour). In return, you generally get paid more than employees to compensate for all you lose out on as a contractor.
This is quite unexpected yeh? For an external to be paid a bonus of sorts after completing their term? Nice one OP, they must have valued your contributions
Thanks its the least they could do. Promised me a BA position but kept me at a lower position for 6 months until they did not need me anymore ;/
What was the payment at the end of the tenure for? Were any of the components listed in your link included in the payment?