Certain tax rules may be particularly important for contractors.
Contractors and employees have different tax and superannuation obligations.
Similarly, if you have people working for you, your obligations differ depending on whether your workers are contractors or employees.
Therefore, it’s important you know whether you are, or your worker is, an employee or a contractor.
A key factor in deciding if a worker is an employee is the degree of control that can be exercised over the worker. If the payer has the right to direct how, when, where and who is to perform the work, the worker is likely to be an employee.
Another key factor to consider is whether the worker is being paid for the time they work, or being paid for a result. Workers being paid by the hour are more likely to be employees. Workers being paid for a result are more likely to be independent contractors.
There are a number of factors to consider in determining whether a worker is an employee or a contractor, with no one factor necessarily conclusive.
