Contractor or Employee?

It’s not always obvious if you are an independent contractor or an employee, writes Peter Taylor of BDS Accountancy.

We’ve got a detailed article with many answers for you to download … read on.

Independent Contractors Defined

You’re an independent contractor if you have a contract for services with the person or organisation you do work for. Check if your contract covers how you can end your working relationship.

Additionally, you’re probably a contractor if you

• are generally contracted to work only for a specific period of time
• are responsible for your own ACC payments
• are responsible for paying your own income tax
• may need to be GST registered
• supply your own work-related tools and equipment
• are not covered by the ERA or the Holidays Act 2003
• have the right to decide how you will do the work

How to determine the ‘relationship’

Case law in New Zealand has established a range of tests to help decide if you are an employee or a contractor. Like the recent Uber case, these are backed by documentation or a written agreement. Here’s the top line list

• Intention of the Parties
• The Control Test
• The Integration Test
• The Fundamental Test
• Industry Practice

Download the Full Article “Contractor vs Employee”