Mr. Howe, a Partner of the CPA firm Dewey, Cheatem & Howe (DC&H), after reviewing an audit of GUBER EATS by DC&H has become concerned that GUBER EATS is not paying the National minimum wage of $19.49/hr. When he talked to the manager of GUBER EATS, Mr. Howe was informed that this was not a minimum-wage issue because the international students delivering for GUBER EATS are independent contractors (e.g. they set up companies and registered for ABNs). Also, the $16.50/hr paid for deliveries was a good deal because GUBER EATS provided the bicycles, uniforms, and the insulated food delivery bags. Further, GUBER EATS expects DC&H to treat this issue as a confidential matter (i.e. to not involve the authoritiesWorksafe, Superannuation, ATO, Fairwork Ombudsman, etc.).

Required: Review the above issue, go to the internet and gather appropriate information to prepare a memo resolving the issues. NB: in your discussion you will need the:

ATO definition of a contractor vs an employee NB: what suggests an employee rather than an independent contractor (e.g. hourly wages vs. fee for service),

Effect of GST, Worksafe premiums, Superannuation fees, etc. on what the hourly wage that should be paid,

Issue of confidentiality is a side issue, but it is still an important consideration.