The Chasers Channel

TCC 58 - Employee or Contractor - Know the Difference?

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If you pay a worker as an Independent Contractor you avoid all the laws that force an employer to treat employees in certain ways. This includes at a minimum overtime and workcover insurance and superannuation. It may also include benefits that the employer provides other workers who are employees including workcover insurance, paid sick leave, holiday pay with leave loading and much more.

However, if they are a genuine employee that you are trying to pass off as a contractor, be warned this will potentially be a costly mistake!

Whether you call them an employee or a contractor can make a big difference. It might seem like a small detail, but Australian businesses can face hefty fines and legal trouble if they get it wrong.

In this episode we will be exploring some of the key differences between an employee and contractors.

What you’ll learn:

  • (0:14) Introduction: Understanding Employee vs. Contractor Status
  • (0:43) General Advice Disclaimer
  • (1:38) Starting Point: Definitions of Employees and Contractors
  • (2:01) Key Factors for Identifying Employees
  • (2:40) More Employee Identification Factors
  • (3:09) Key Factors for Identifying Contractors
  • (4:01) Written Contracts and Contractor Relationships
  • (4:30) The Boss’s Role: Managing Employees and Contractors
  • (4:47) Tools, Time, and Flexibility: Comparing Employees and Contractors
  • Loads More…

Links and Resources:

Australian Taxation Office (ATO) – Employee or Contractor

Business.gov.au – Hiring Employees or Contractors

#EmployeeVsContractor #BusinessCompliance #TaxAdvice #WorkplaceLaw #AustralianBusiness