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Employee or contractor
It's important you correctly determine whether your worker is an employee or contractor as you'll need to meet different tax and super obligations.
To find out whether your worker is an employee or contractor use our online tool Employee/contractor decision tool
Workers who are employees
Some types of workers are always employees. If you engage any of the following types of workers you need to treat them as an employee:
Duration 5m:27s. A transcript of Tax basics for small business: Paying workers is also available.
Difference between employees and contractors
Employees work in your business and are part of your business. Contractors are running their own business.
Work out whether your worker is an employee or contractor
To correctly work out whether a worker is an employee or contractor, you need to look at the whole working arrangement including the specific terms and conditions under which the work is performed.
Mistakes to avoid
Make sure you don't rely on the common myths that cause many businesses to get it wrong when determining whether a worker is an employee or contractor.
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