SUBJECT – What is a contractor?
Hi I'm Jeff Banks, Business Advisor with over 30 years experience at MWL Financial Group specialising in small business.
A contractor is a person or organisation that undertakes a contract to provide materials or labour to perform a service or job.
While a contractor will usually have an ABN, work short-term contracts and may have multiple clients, all these factors are not confirmation that the person or organisation is in fact a contractor. Whether a person or organisation is a contractor is dependent on the facts and the terms of the working relationship.
A true contractor will usually get paid to produce a certain result as opposed to charging an hourly rate, will provide their own tools, and will have the power to delegate the work as they see fit. Why is all this important? Contractors and employees have very different obligations and rights, and if you are either a contractor or engaging a contractor – it is crucial to get the facts right, so that you meet all your compliance obligations.
For more information contact us at firstname.lastname@example.org and either me, Jeff Banks or one of our experts will be more than happy to help.