Employee or Contractor

Employee or Contractor

If you are looking to hire a contractor or an employee, you must, as the owner of the business, inform that person in what capacity you are hiring. This is not just for new employees; you must inform people who already work for you. This information is vital if the correct payments are processed.

There is no longer any reason why you as a business would misinform your staff as to their legal obligations for paying their taxes. If you fail to act in the six months from the start of the new legal requirements, to inform those people who work for you as to their employment status, it is assumed they are employed and you, as the owner, are responsible for making sure that the money they earn is correct and taxes paid.

This drive is part of the initiative by the government to make sure people are paying the correct tax and to drive down the worker classification mistakes, which are a very high reason for incorrect payment of tax. This is due to the worker being unaware of their own responsibilities and assuming they are an employee and not a separate contractor, who is responsible for their own tax payments.

It is important in the moving business, that the employers and the contractors are fully aware of their own responsibilities. It is a move in the right direction for the moving industry, because it is another angle that needs addressing to remove those companies that choose to run their business in a poor manner. It then has a negative impact on the industry as a whole, making it look like sub-standard practices occur.

Therefore, companies need to stand together as an industry and push for classification mistakes to be stamped out. Any company that is not operating correctly and within the law needs to be made aware of the errors that are costing the industry in consumer confidence.