The question never seems to go away. Should I allow somebody to rent-a-chair?
You first need to weigh up the risks to you and your business. There are a number of indications which the Fair Work Ombudsman and the Australian Taxation Office will look at to determine whether the person standing behind that chair is an employee or in fact a genuine independent contractor. Their offer to let them pay you an amount per week in exchange for a tax invoice by them is definitely NOT the criteria.
The tables below give some guidance on some of the more common indicators on whether a person is genuinely a contractor or in fact an employee. The risks in monetary terms alone are significant if you get it wrong!
The 80% rule above refers to a tax ruling that if as a contractor 80% or more of your income is derived from the one source you may be considered an employee of that organisation. CLICK HERE to go directly to the ATO site which explains this rule fully.
If members have any further queries, phone the HBT office on 03 6234 5511.