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  • How to determine if workers are employees or contractors

    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

    Attention

    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:

    • apprentices
    • trainees
    • company directors
    • labourers
    • trades assistants.
    End of attention

    Watch

    Duration 5m:27s. A transcript of Tax basics for small business: Paying workers is also available.

    End of watch

    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.

  • Last modified: 22 Apr 2014QC 33190