Episode 68: Contracting vs Employee and Personal Services Income (PSI)
November 14, 2022
To staff your business with contractors or employees is a question that many businesses have had to consider. But which is right for you or is a combination best? There are distinct differences between employees and contractors from a legal, taxation and even practical perspective. Understanding these differences is important to enable you to make the right decision for your business so let Sarah and Trudi take you through some of the key factors to consider. They talk through the practical differences between the two, the cost differences and the taxation issues to consider. They also touch on some recent changes on how to determine whether your team are employees or contractors for tax purposes (see also a recent TCK blog post on the topic). Trudi and Sarah also take you through some considerations if you are the individual making the decision as to whether you want to me an employee or contractor – particularly in relation to how the personal services income rules could mean from a taxation perspective it makes no difference.
The contractor v employee distinction is an area where we strongly recommend professional advice as the answer can vary depending on small changes to your factual scenario. This episode is an introduction to the topic only.
Podcast Transcript Available Here
Duration: 25:12
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Just two industry experts (and guests) having a friendly chat and sharing our knowledge. We aim to raise your knowledge base and dis-spell any myths surrounding finance. tax and a range of other financial topics.
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DISCLAIMER- The information and material in this podcast, and supplementary and associated information available, is for general information only. It should not be taken as constituting professional advice from the podcast owners, and we recommend you seek independent suitable advice that is specific to your unique circumstances.