Deciding if your worker is an employee or contractor for tax and super comes down to the circumstances of your working arrangements and asking yourself the right questions.
But sometimes there’s nothing to ask! Some workers are always employees, such as apprentices, trainees, labourers and trades assistants. This is because you provide them with instruction, have supervision over the work they perform for you and they aren’t running their own business. Even if they have an ABN, or have been a contractor before, you’ll risk charges and penalties for your business if you treat them as a contractor.
Always remember, the nature of their arrangement with you will be one of an employee to employer and you’ll need to meet the same tax and super obligations for them as you do for any other employee of your business.
To understand your obligations, use the handy employee checklist available on the ATO website.
Reshared with permission from our mates at Carpentry Australia. Check them out if you’re a #ProudChippy – they’re working hard to achieve higher rates, stronger regulation and more respect for the carpentry trade.