Contractor or Employee?

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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”

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