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Home / Super booster / Super resources / Employers guide to super / Employee or contractor for super purposes? How to tell the difference

Employee or contractor for super purposes? How to tell the difference

Janine Mace

Most employers know they are not required to pay super contributions for the genuine contractors their business uses to provide a range of services.

But simply calling someone a contractor – or asking for their ABN – doesn’t release you from obligations under super law to make Super Guarantee (SG) contributions on their behalf.

So how do you decide who is or isn’t a contractor?

Who’s an employee for super purposes?

Deciding who is a contractor and who is an employee is important when it comes to making super contributions for your staff. If you get it wrong, the ATO can impose some pretty costly penalties.

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About the author

Janine Mace
Janine has over 25 years’ experience writing about superannuation, including a decade as Managing Editor of the ASFA’s highly respected industry magazine, SuperFunds. She has worked with a range of super funds and leading institutional investment managers. Her work has appeared in the Australian Financial Review personal finance section and she has been a regular contributor to Money Management and Financial Planning magazines.
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