ATO Employee Contractor Decision Tool

Go to Website: www.ato.gov.au/Calculators-and-tools/Employee-or-contractor/

ATO Employee Contractor Decision Tool. To check if your worker is an employee or contractor, you need to consider the whole working arrangement. There are a number of factors that need to be considered, not just the terms of the employment contract. There isn’t one factor that makes a difference on determination on its own.

You can use the employee/contractor decision tool to help you work out if your worker is an employee or contractor for tax and super purposes.

The decision tool is for use by businesses that engage and pay a worker.

The tool is not designed for:

labour hire firms
individual workers
operators or drivers deriving income in connection with ride-sourcing arrangements.

Difference between employee and contractor

It's important to understand the essential difference between an employee and a contractor:

An employee works in your business and is part of your business.
A contractor is running their own business.

We've developed a table outlining six of the factors that, taken together, determine whether a worker is an employee or contractor for tax and super purposes. This information helps in understanding each contributing factor involved in the decision-making process.

What this decision tool gives you

When using the employee/contractor decision tool, you need to accurately answer some questions about the working arrangement between you and your workers.

After you've done this, you'll receive a report that outlines:

whether your worker is an employee or contractor for tax and super purposes
the tax and super obligations you need to meet.

Note: The tool does not store the information you provide or the answers you select. You will remain anonymous at all times.

Hunter Partners are Accountants, Tax Agents and Financial Planners. We can assist you with all aspect of your accounting, tax and financial planning requirements, call Hunter Partners on (07) 4723-1223.