Payroll Revenue Ruling PTA.038

On 29 July 2011 the Victorian State Revenue Office released Revenue Ruling PTA.038 – Determining whether a worker is an employee. The Ruling provides information about employment relationships to assist employers, principals and their professional representatives in determining whether their workers are common law employees and applies from 1 July 2011.

The Ruling highlights a number of areas which help determine the correct relationship of a worker and the Ruling takes the view of this from the courts perspective. In a common law relationship there is a contract of service which is based on a 'mutuality of obligation'. This includes some of the following factors which are considered by the courts in determining whether a worker is an employee: