Employment agency contracts chain of on-hire declaration
PTA-Form-04
What is the purpose of this form?
This declaration is to be used to notify the SRO of the liable party in relation to a chain of on-hire.
Who can complete this form?
This declaration is to be made by the employment agent who is the closest to the ultimate client who is the end-user of the labour provided by the service provider and submitted directly to the Employment Agency.
Please read Revenue Ruling PTA-027 carefully before completing this form.
How is this form lodged?
This form is completed online. When you have completed all relevant and mandatory information, please select submit. A copy of the form will be sent to the supplied email address. You are then required to submit the form directly to the Employment Agency.
This form is not submitted to the SRO.
The Employment Agent must keep this declaration for 5 years and be able to readily produce it upon request by the SRO.
Before you start, please review our SmartForm tips to help you complete this form.
Explanatory notes
1. Anti-avoidance
Under the anti-avoidance provisions in section 42 of the Payroll Tax Act 2007 (the Act), the Commissioner of State Revenue may impose a payroll tax liability on any party to the employment agency arrangement if this declaration is incorrectly made.
2. Chain of on-hire
A ‘chain of on-hire’ occurs when an employment agent on-hires a worker to another employment agent who in turn on-hires the service provider to its client.
3. Division 8 of Part 3
Division 8 of Part 3 of the Act imposes payroll tax on wages paid by employment agents to staff on-hired under employment agency contracts.
4. Employment agency contract
An employment agency contract is a contract under which a person (employment agent) procures the services of another person (service provider) for a client of the employment agent. Such a contract could be formal or informal and could be expressly made or implied.
5. Record keeping
This declaration must be kept by Agent 1 for 5 years. Agent 1 must ensure that this declaration can be readily produced upon request by the State Revenue Office.
6. Who is liable?
Revenue Ruling PTA-027 states that where there is a chain of on-hire, the employment agent (Agent 2) closest to the ultimate end user of the service provider is liable for payroll tax on the payment(s) made to Agent 1.
