• Video transcript - Employee or contractor? Avoid the myths

    This transcript is for the video Employee or contractor? Avoid the myths.

    You make a lot of decisions when running your business.

    So what about the people who work for you? They're contractors, right? You sure? Because you're responsible for getting it right.

    Be careful! There are myths about what makes someone a contractor such as

    • having an ABN
    • only being needed for short term work
    • simply agreeing to the arrangement
    • invoicing you for work, or
    • just that everyone else in the industry calls them a contractor.

    It turns out that none of these things by themselves determine whether someone is a contractor or employee. It's not a choice.

    There are rules and every working arrangement may be different.

    Getting it wrong could land you in trouble - putting your business at risk of penalties.

    But the ATO is here to help - even if you've got it wrong - and has made it really easy to check your working arrangements.

    Use the ATO's Employee/contractor decision tool to answer some questions about your working arrangement and get an answer you can rely on.

    So, even if you're pretty sure about your current or future working arrangements, double check with the ATO's decision tool and be certain you've got it right.

    To use the tool go to ato.gov.au/ec

      Last modified: 25 Feb 2016QC 48030