Sometimes it seems like everyone is an expert – trust me, they aren’t!
In the area of determining whether a contractor is really an employee, don’t pin your outcome on the stuff of fairy tales, seek expert advice!
The National Tax Accountant’s Association recently released a list of myths surrounding the contractor v employee question including the following:
MYTH: if a worker has an ABN they’re a contractor
MYTH: everyone in my industry takes on workers as contractors so my business should too
MYTH: employees cannot be used for short jobs or to get extra work done in busy periods
MYTH: a worker cannot work more than 80% of their time for one business if they want to be considered a contractor
MYTH: my business has always used contractors, so we don’t need to check whether new workers are employees or contractors
MYTH: if a worker has a registered business name, they’re a contractor
MYTH: if a worker is a contractor for one job, they will be a contractor for all jobs
MYTH: my business should only take on contractors so we don’t have to worry about super
MYTH: workers used for their specialist skills or qualifications should be engaged as contractors
MYTH: my worker wants to be a contractor, so my business should take them on as a contractor
MYTH: if a worker submits an invoice for their work, they’re a contractor
MYTH: if a worker’s contract has a section that says they are a contractor , then legally they’re a contractor
All of the above are MYTHS!
To ensure you get this right, Contact The Tax Chic to discuss!
Regards