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It is important that you do not mistakenly engage a person as a contractor when they are, in fact, an employee as you may become responsible for things like workers compensation, superannuation, payroll tax and even a contractor’s unpaid income tax. Just because someone has an ABN does not necessarily mean they will be regarded by the regulators as being an independent contractor. A particular risk is if your contractors are simply paid an hourly rate for hours worked rather than upon the achievement of a result.
NSW Fair Trading sets out the works that can be carried out by each licence category.
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No matter the size of the job, a watertight building contract is critical to protect your business, and the current climate presents a great opportunity to go digital with your contracts.