Is that a Contractor or an Employee You’ve Hired?
When you engage a contractor who has their own ABN and pays their own tax, they are not considered a worker of yours, meaning you don’t have to declare their wages. Right? Not necessarily.
WorkCover Queensland customer services manager John Kinnane breaks down some of the complex indicators outlined in the Workers’ Compensation and Rehabilitation Act 2003 to help you work out if someone you’ve hired should be covered under your policy.
Particularly relevant to the industries that engage sub-contractors and sole traders including the labour hire, construction and mining industries, understanding who is classified a worker is crucial. Having the right cover means you won’t be liable for claim costs plus a penalty if someone deemed a worker is injured while working for you.
While there are many elements used to determine if someone is deemed a worker according to the Act – meaning you will need to cover them under your workers’ compensation insurance policy – there are three main points to consider....