Employee or Contractor?
This should be correctly determined when a worker starts work as your tax, super and other obligation will vary depending on whether a worker is an employee or contractor.
Here are some ways of determining:
- An Employee work in your business and are part of your business
- They are paid for the time worked, price per item or commission
- Your business provides all or most of the equipment or provides an allowance for such equipment
- Your business is legally responsible for work performed and liable for any defects
- Your business has the right to direct the way in which the worker performs their work
- The worker is not operating independently from your business
- Running their own business and provides a service to your business
- Has the ability to sub contract/delegate the work
- Worker is paid based on an achieved result
- Worker provides all tools and equipment
- The worker is legally responsible for their work and liable to any defects
- Free to accept or refuse work
Ally Wadwell | Accountant | The Money Edge | Bundaberg