Employee vs Contractor

The difference between an employee and an independent contractor depends on the nature of the working relationship and the terms of the contract. Employees work as part of your business, while contractors operate their own business and provide services to yours. Even if someone is a contractor, superannuation obligations may still apply in certain situations, particularly where the work is mainly for their labour.

​Apprentices, trainees, labourers, and trades assistants are generally always considered employees, while companies, trusts, and partnerships are treated as contractors. When hiring individuals, it is important to review the full working arrangement and contract to determine the correct classification for tax and super purposes.