Employee or contractor myths – written agreements

Stating in a written agreement that your worker is a contractor doesn’t mean they are, nor does it protect you from potential penalties for getting it wrong. This is a myth.

The fact is, if your worker is legally an employee, having a written agreement will not:

  • override the employment relationship or make the worker a contractor, or
  • remove your tax and super obligations.

You need to look at each working arrangement and find out if your worker is an employee or contractor to understand your tax and super responsibilities for them.

So how do you get it right with your workers?

Employee/contractor decision tool

Use the ATO Employee/contractor decision tool to get a quick and reliable answer. The tool will tell you if your worker is an employee or contractor for tax and super purposes and what this means for your business.


Register for the ATO free Employee or contractor webinar to help you understand your working arrangements in more detail – the sessions are interactive if you have questions you’d like to ask.

Next steps:

Find out about:

Source: ATO Newsroom

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