When Is A Contractor a Contractor?

Here are key indices to consider when deciding if a person you employ is a contractor vs an employee. Thanks to Workplace Bulletin

  1. You do or can control and direct the way contracted work is performed.
  2. The worker can perform work for others.
  3. The worker has a separate place of work and can advertise their services to others.
  4. The worker can delegate or subcontract work.
  5. The worker is represented as part of your business e.g. uniforms or business cards.
  6. You pay the worker a wage based on time served.
  7. You pay the worker subject to completion of results.
  8. You can suspend or dismiss the worker.
  9. The worker pays their own work related expenses.
  10. The worker has an Australian Business Number (ABN) and (if applicable) is registered for GST.
  11. You deduct PAYG tax
  12. You dictate the rate you pay the worker for services.
  13. The fee paid to the worker for services is negotiated
  14. The worker can increase the profit or net return by changing the way services are provided to you.
  15. The worker is paid during leave from work.
  16. The worker uses their own tools or equipment
  17. The goodwill created by the worker’s activity is the worker’s goodwill, not the goodwill of your business.