Your business is responsible for ensuring each of your workers are correctly hired as either an employee or contractor and that you are meeting all your tax and super obligations.
Before you enter into a work agreement or contract with a worker, you need to check whether the arrangement is of employment or for contracting.
It is important you correctly work this out as penalties and charges may apply if employees are being incorrectly treated as contractors.
Use our Employee/contractor decision tool to get an answer about whether your worker is an employee or contractor. It is free, anonymous and easy to use.
Characteristics that do not make a worker a contractor
None of the following characteristics often found in the building and construction industry will make a worker a contractor:
- the work to be completed is project based
- workers are only needed for a short or 'defined' period of time on a job
- workers are required at a specific point in the project
- specific trade tickets, qualifications, skills or experience are needed to complete an aspect of the job
- workers are only needed on a 'one off' or irregular basis
- worker has worked previously as a contractor on a job or work site
- worker has an Australian business number (ABN).
Just because a worker has an ABN does not mean they will be a contractor for every job.