ARE YOUR WORKERS EMPLOYEES OR CONTRACTORS

When hiring a worker it’s important to check if they'll be an employee or contractor of your business. 

 

You need get this right because it affects your tax, super and other obligations. Incorrect treatment of your employees as contractors may result in your business having to pay penalties and charges.

 

The six key considerations to take into account are: 

• Workers ability to subcontract/delegate
• Basis of payment for work completed
• Who provides the equipment, tools and other assets
• Who carries the commercial risk of the work
• Who has control over the work
• Level of independence of the worker  

The Australian Taxation Office has an anonymous web based tool that can be useful to determine whether a worker is an employee or a contractor. It, together with further information on this topic, is located at:

https://www.ato.gov.au/Business/Employee-or-contractor/How-to-determine-if-workers-are-employees-or-contractors/

 Please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 to discuss further.

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.