Article: Employment Status Contractor versus Employee

The first of the PAA Survey series for 2017 indicated that many of our members are contractors and unsure of the true differences between contractor and employee.

On your PAA member login area, you can click on Responsibilities of Running a Pilates Studio or Business and find the relevant information to this.

In referencing the Australian Taxation Office,

  • Are you an individual worker or do you work for a company or partnership?
  • Are you an apprentice or trainee?
  • Having an ABN does not necessarily mean you must be a contractor. You may still be classified as an employee.
  • Who provides the equipment or tools – yourself or the business?
  • Are you reimbursed for any costs that are accrued around equipment or tools
  • Are you likely to be eligible for Superannuation
  • Are you paid greater than $450.00 (before tax) in any calendar month in the relevant quarter

To find out more about the difference between employees and contractors, you may also direct to

https:www.ato.gov.au – Difference between employees and contractors

If you are a Business owner, we want to ensure you are setting the correct employment contracts for your workers and as a worker, we want you to be sure that you are contracted correctly according to the ATO.

Jen Guest
PAA President

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