Is that worker a contractor or an employee? A quick checklist

The ATO has an online tool that can help, and the following table can help decide the status of a worker:Is that worker a contractor or an employee?

FactorIndicative of an employeeIndicative of an independent contractorDoes the worker have control over the way a task is performed?NoYesDo they supply/maintain their own tools or equipment?NoYesDo they work standard hours?YesNoAre they paid according to task completion, rather than receiving wages based on time worked?NoYesDoes the worker incur any loss or receive any profit from the job?NoYesDo they accept responsibility for any defective or remedial work that was their doing?NoYesAre they free to work for others at the same time?NoYesDo they accept that work lasts for the term of each particular task or contract?NoYesDoes the worker have the right to employ or subcontract any aspect of their work to another person?NoYesDo they have the right to employ an apprentice or trainee in the execution of contracts?NoYesDoes the worker understand the arrangement with you as a contract for services?NoYesDo you, as employer, deduct tax from the worker’s pay?YesNoDoes the worker provide their own public liability and sickness and accident insurance cover?NoYesDo they receive paid holidays or sick leave?YesNoDo they render tax invoices for payment?NoYesDo they file GST returns?NoYes*

* They may not if turning over less than $75,000. Click here to download a printable document of the above table.

The following ATO video dispels the myths surrounding contractors versus employees. Is that worker a contractor or an employee?

#[contractors], [contracts], [employemnt status]