How to determine if workers are employees or contractors

About this guide

This guide provides information to help businesses determine whether their workers are employees or contractors for tax and super purposes.

If your business is in the building and construction industry, refer instead to Building and construction industry - how to determine if workers are employees or contractors.

Labour hire or on-hire arrangements

If you have obtained your worker through a labour hire or on-hire firm and pay that firm for the work the worker does in your business, then:

• your business has a contract with the labour hire or on-hire firm - your business has not directly engaged the worker
• the labour hire or on-hire firm is responsible for meeting the required pay as you go (PAYG) withholding, super and fringe benefits tax (FBT) obligations for the worker.

Labour hire or on-hire firms can be called different names including recruitment services and group training organisations (where your business is referred to as the 'host employer').

If your business is labour hire or on-hire, refer to PAYG withholding and labour hire firms to understand your specific tax and super obligations for your workers.