It can be difficult trying to work out what is the difference between an employee and a contractor.
A good starting point is to remember that an employee works in your business and is part of your business. A contractor is running their own business.
The main areas to check are the following:
- the ability to delegate and subcontract the work
- the basis of employment
- who provides equipment tools and other assets
- who bears the commercial risk of tasks completed
- who has control over the work or tasks completed and finally
- is the worker completing the tasks independently of your business
For more information, please follow this link to the ATO website
Here is a tool from the ATO website which can help to decide if a worker is an employee or a contractor
Here are some links to case studies which can also help to determine if a worker is an employee or a contractor:
