Independent contractors decision tool

Not sure if you are, or your worker is, a contractor or an employee?

Contractors and employees have different rights and obligations, so it's important to work this out.

Whether you're a worker or someone who pays a worker, the independent contractors decision tool can help you understand what your working relationship is.

Independent contractors decision tool

How the tool works

The tool asks 16 questions that are based on what the courts consider when deciding whether someone is in:

  • an employee to employer relationship, or
  • an independent contractor to hirer (or business to business) relationship.

Once you've submitted your answers, you'll get a report that:

  • identifies whether each of your answers points more to an independent contractor or an employee relationship
  • indicates what your relationship might be based on all your answers.

You should also know that when we say "payer", we mean the employer or hirer. When we say "worker", we mean the employee or the contractor.

What the tool doesn't do

The independent contractors decision tool is a guide only and doesn't have any legal force or effect.

You can't rely on the tool to decide whether someone is in an independent contractor or employee relationship under particular legislation. You may need special assessments under legislation such as:

  • taxation
  • superannuation
  • workers' compensation.

If you want to work out what your working relationship is for taxation and superannuation purposes, you can use the Australian Taxation Office (ATO) Employee/contractor decision tool.

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