Are Your Staff Employees or Contractors?

How you pay your staff is a bit of a minefield and one you should take time to investigate as the ATO conducting audits on many Companies and industries who commonly mistake employees for contractors.

Generally speaking contractors are paid for the results they achieve rather than the hours they work. They do not normally have to work during hours set by an award or by the employer, and they use their own tools of the trade and equipment (including computers). If a contractor cannot complete the project they have been hired for, and they are unable to delegate it to someone else within their business to complete, then they may well actually be an employee not a contractor.

To find out whether you are classifying your staff in the correct way – use this fabulous online questionnaire / tool from the ATO which will give you the answer in a few clicks – http://www.ato.gov.au/content/00109758.htm