Contractors or Employees

Accountants who know the importance of differentiating between contractors and employees.

It is important to know the differences between an employee and a contractor
  (also called an independent contractor or sub-contractor) as this will affect your responsibilities, such as paying superannuation contributions.
In simple terms, employees work in your business and are part of your business, while contractors run their own business and provide services to your business. Other differences are as follows:

You are in control of the work they performIn control of when and how they work
Are recognised as part of your business and usually work on a regular and ongoing basisnsCan accept and perform work for other people while engaged by your business
Paid according to relevant award or contract of employmentPaid based on invoices and results achieved
Supplied with your materials and equipment to undertake work Supply their own materials and equipment to undertake work their own tax and superannuation
Represent your business Represent their own business

A recent Federal Court case has again shown how difficult it is to prove if someone providing services is an independent contractor or an employee – and how expensive getting this wrong can be.

OUTRUN Accountants can provide you with relevant information and assist you to be compliance.

We are also on hand when you need to make important purchases or business decisions, advising you on the most effective means of maximising your income and ensuring that you pay the right amount of tax. Our advice is based on over twenty years experience of working with contractors and consultants who make a up a key part of our accounting client base.

Here at OUTRUN Accountants we pride ourselves on our long term partnerships with our customers and we are keen to work with you too as you develop your contracting or consultancy business. We specialise in small business accounting and small business taxation. Contact us today on 02 47 22 6970 or make an online enquiry to arrange a time to pop in for your free* initial consultation.