For Accountants

Payroll Tax 21 Requirements

This page is specifically targeted towards Australian qualified Accountants who are considered Medical Sector Accountants and work exclusively with medical practices.

In our firm's attempt to expand, we have been actively searching for Accountants able to review clients' financial documentation according to the 21 requirements outlined by relevant Tax Authorities.

Are You a Medical Sector Accountant?

Call us

(08) 8523 3177

Email us

office@hamiltonbailey.com

Response time

Within 24 hours

Express Interest

The Certification Process

Understanding the dual certification requirement for payroll tax compliance

Accountant Certification

Our interpretation of relevant case law and rulings suggests that certifications from accountants must verify compliance with the 21 financial and operational requirements.

Upon the Client's Accountant providing our office a PT21 Compliance Certificate, we will then finalise our mutual Client's annual legal-audit review.

Legal Certification

Hamilton Bailey provides the legal certification component, reviewing the Service Agreement and overall compliance structure.

This certification accompanied by the Service Agreement is then forwarded to the relevant Tax Authority in support of the Client's claim of compliance.

Why Dual Certification?

Such expectations are predominantly due to the workload experienced by the relevant Tax Authorities, and the justification that a particular arrangement is compliant should be independently verified by qualified professionals in both accounting and law.

The 21 Requirements Overview

Key areas that must be certified for payroll tax compliance

1
Valid and binding Service Agreement in place
2
Clear delineation of independent contractor status
3
Arm's-length fee arrangements documented
4
Operational independence demonstrated
5
Separate ABN registration verified
6
Professional indemnity insurance held by practitioner
7
Control over work methods retained by practitioner
8
Equipment and tools ownership clarified
9
Risk of profit/loss borne by practitioner
10
Right to delegate or subcontract
11
Ability to work for other practices
12
No exclusivity clauses (unless commercially justified)
13
Billing arrangements properly structured
14
Patient records ownership defined
15
Marketing and branding separation
16
Leave and entitlements not provided (as employee would receive)
17
Superannuation arrangements compliant
18
GST registration and treatment
19
Medicare billing compliant
20
Privacy Act compliance documented
21
Two additional specific requirements (discussed in consultation)

Note: There are two further requirements in addition to the above. However, for purposes of brevity these further points can be discussed in consultation with interested parties.

Partnership Opportunity for Accountants

We're seeking qualified accountants to partner with for client compliance

Joint Client Service

Work together to provide comprehensive compliance services to mutual clients

Clear Process

Established workflow for PT21 certification and annual review processes

Professional Recognition

Certification process recognised by relevant Tax Authorities

Interested in Becoming a Certification Partner?

If you believe you can satisfy the 21 requirements in your annual review and certify our joint clients, we'd love to hear from you.