Here are key indices to consider when deciding if a person you employ is a contractor vs an employee. Thanks to Workplace Bulletin
- You do or can control and direct the way contracted work is performed.
- The worker can perform work for others.
- The worker has a separate place of work and can advertise their services to others.
- The worker can delegate or subcontract work.
- The worker is represented as part of your business e.g. uniforms or business cards.
- You pay the worker a wage based on time served.
- You pay the worker subject to completion of results.
- You can suspend or dismiss the worker.
- The worker pays their own work related expenses.
- The worker has an Australian Business Number (ABN) and (if applicable) is registered for GST.
- You deduct PAYG tax
- You dictate the rate you pay the worker for services.
- The fee paid to the worker for services is negotiated
- The worker can increase the profit or net return by changing the way services are provided to you.
- The worker is paid during leave from work.
- The worker uses their own tools or equipment
- The goodwill created by the worker’s activity is the worker’s goodwill, not the goodwill of your business.