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