Superannuation Law Essay Research Paper Coursework (Essay Sample)

Whether the Valuers are Employees under s12 of the Superannuation Guarantee (Administration) Act 1992
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Whether the Valuers are Employees under s12 of the Superannuation Guarantee (Administration) Act 1992
Contracting has, in the recent times, become a substitute for the traditional relationship found in employment and is often necessitated by the need for specialized skills that would otherwise not be easily obtained through employee recruitment. Engagement of a contractor can be through a company, trust, a labour hiring agency, partnership or directly as a natural person. Contracting has the benefits of being more cost-efficient than employment, and it gives the individuals who are contractors the opportunity of serving multiple clients. However, various issues arise to the employers when they engage these persons as contractors without having adequately interpreted the law. It may be considered under the law that the individual is an employee, which may result in numerous legal liabilities and obligations when not interpreted correctly. Under the Superannuation Guarantee (Administration) Act 1992 (Butler and James, 2015), employers are obligated to pay a particular amount to go into the employee’s retirement fund. Different issues that emerge include:[Butler, D., & James, R. (2015). Superannuation: Amendments to the superannuation guarantee charge. Taxation in Australia, 50(5), 273.]