To determine whether a worker is a contractor or employee, construction or building company can use this.
Employee/contractor decision tool
For super or tax purpose your worker is contractor or employee you should use employee/contractor tools. Worker work in your business or they are part of your business.
Contractors run their own business and provide services to your business.
Who should use the decision tool?
If your company pays workers, you can use this decision tool.
It is not designed for all situation such as:
- When you sign an agreement with a company, partnership or trust for them to provide a worker
- obtain workers through an intermediary such as a labour hire or on-hire firm
The benefit of using decision tools
You will get a report when you answer some basic question which include
- give you answer whether your worker is employer or contractor as a tax and super
- based on your answer you will get a summary.
- information about the tax and super obligations you need to meet.
Provided your responses accurately reflect the working arrangement:
- result provided by the tool will be accurate that you can rely on.
- we will not charge you a penalty that might otherwise apply if we review the arrangement in the future and find you have not met your pay as you go withholding obligations for the worker.
For record keeping purposes keep a copy of the decision tool result.
Using this tool is completely free. Moreover, you will not require to provide any personal information, so you will be always anonymous
Things to remember
This Employee/contractor decision tool:
- It will provide class of or status of worker under the law we administrate
- is based on Taxation Ruling TR 2005/16 and Superannuation Guarantee Ruling SGR 2005/1 that discuss the various indicators the courts have considered in establishing if a person, engaged by another individual or entity, is an employee within the common law meaning of the term
- It does not provide any other guidance, such as federal, state and territory government obligations which you need to meet – for instance, payroll tax obligations.
GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on firstname.lastname@example.org we will check your employment history from ATO records, personal visit available at tax refund on spot.