Its Employee Legal Awareness Day and awareness is important for small business owners.
When it comes to the law, what is an employee? And who can be a contractor?
Don’t forget that super may still apply for genuine contractors if they are principally supplying labour.
We’ve googled to bring you the important bits from various government departments.
To follow the law, businesses need to make sure they aren’t treating employees as contractors – it’s not as simple as whether or not they have an ABN or send invoices.
says business . gov. au
ATO says:
Some workers are always employees
– Apprentices
– Trainees
– Labourers
– Trades assistants
You are responsible for classifying your worker for tax and super purposes and you need to get it right. If you make an incorrect decision, you may face penalties.
To check if your worker is an employee or independent contractor, you need to review the whole working arrangement.
The critical differences between an employee and independent contractor are:
– an employee serves in your business, and performs their work as a representative of your business
– an independent contractor provides services to your business and performs work to further their own business.
Ask us to give you a hand to review your worker classifications
Source info can be found here:
https://business.gov.au/people/contractors/employee-or-contractor
https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/employee-or-independent-contractor/difference-between-employees-and-independent-contractors
