There’s not just one deciding factor that makes a worker you hire an employee or contractor for tax and superannuation purposes. As an employer, it’s a decision you can only make once you’ve reviewed the entire working arrangement.
It’s important to assess this correctly because getting it wrong will put your business at risk of penalties and charges. Failing to pay your workers their correct entitlements is a costly mistake.
To get to the right answer, you need to consider a number of factors. Before hiring a contractor review the following case scenarios:
If the answer is no to some or all of these scenarios, you need to seek further information and advice before treating your worker as a contractor.
Employee/Contractor decision tool: