According to the ATO, if you hire a worker you must check if they are an employee or contractor.
Why is this important?
Because, it affects your obligations for tax, super and other important responsibilities and if you get it wrong, penalties and charges may apply.
So, how can you tell?
To check if your worker is an employee or contractor, you need to review the whole working arrangement. The easiest way is to use the ATO’s decision tool.
The Employee/Contractor decision tool helps you to work out if your worker is an employee or contractor for tax and super purposes. Simply answer questions about the working arrangement and you’ll generate a report that you can keep for your records. According to the ATO, if you answer each question accurately and honestly, you can rely on the results.
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