Employees, Contractors and Registered Business Names

A myth surrounding the employee or contractor decision is that having a registered business name makes a worker a contractor.

David Balwin
CPA | Accountant | Business Advisor

The ATO advise that having a registered business name makes no difference to whether a worker is an employee or contractor for a particular job. You need to examine the details of the working arrangements to check whether your workers are employees or contractors.

A worker who has a business name might be a contractor for one job, and an employee for another. It all depends on the specific terms and conditions under which the work is performed.

The ATO’s online Employee/contractor decision tool will help to correctly determine whether your workers are employees or contractors. By answering some simple questions, the online tool will provide you with an answer you can rely on. It is free, anonymous and easy to use.

Too hard doing it this way, contact Balanix Taxation Services (07 32644783) – we can help.

(Source: ATO – SME Communicator December 2012)

“These comments are general in nature and in no way intended as tax advice as Balanix Solutions is not a tax advisor and it is recommend that you seek the advice of a registered tax agent to ensure your specific needs/requirements are addressed.”