We often get asked by small businesses how they should classify workers in their business. Are workers considered as employees or contractors? The question often includes something around the worker having an ABN so they must be a contractor! Unfortunately, whether a worker has an ABN or not has little bearing on the actual employee vs contractor decision.
This blog post is an extension of an article we wrote for Shoestring in November 2013 and we have included some helpful and more detailed tips about how to navigate your way through this issue and ensure that you are meeting your responsibilities as a small business owner.
So what is the difference between and employee and a contractor:
Employee: an employee is someone who works in your business and is a part of the business.
Contractor: A contractor is someone who is running their own business