Avoid the pitfalls of PRT
September 28, 2009
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“My clients are predominantly in the IT and Financial Services sectors. That said, I often deal with firms, unfamiliar with their responsibilities in the way of Tax, Payroll Tax, and Employment Law when it comes to project based, high end professional contractors.
Overlapping legislation can be confusing and a large part of my role involves educating clients and providing compliant solutions. I have even come across companies that build the Payroll Tax component into the contractors rate and ‘hand over’ the payment responsibility to them, unaware that they are responsible if the Tax is not paid to the Office of State Revenue.
In these instances where a contractor provides a service to a client, the liability for PRT is with the client, irrespective of any contractual agreement.”
(Stacey Nolan, PayPartners Business Development Manager)