GLOBAL PAYROLL MAGAZINE
75
the worker would be considered an employee for tax purposes if they had been directly engaged. Broadly, medium and large private sector end clients and public sector organisations need to: Decide the employment status of a worker providing services through an intermediary and document this in a Status Determination Statement (SDS). This must be done for every contract agreed with a worker engaged in this way, whether
directly or via a third party such as an agency.
Pass the SDS (which must include the determination and the reasons for it) to the worker and (where relevant) any other person they have contracted with in respect of that worker (again, such as an agency). Under the OPW rules, where the status is determined to be inside the OPW rules, tax, NIC, and (potentially) the Apprenticeship Levy needs to be operated under PAYE. If outside
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