Common Employee or not? When grouping provisions do not apply

It is a common misconception that only related entities may be grouped under the Payroll Tax Provisions. However, this is often not the case as many of our matters have consisted of several unrelated SMEs being grouped despite having no connection with each other. We understand that these circumstances arise commonly in the context of where Management Agreements are used for the provision of services in a business premise. As such, this is quite relevant in the context of pharmacies, vets and medical practices, where management agreements are commonly used and more than one business operates within a single business premise.

This article will discuss the following:

• What are the grouping provisions;