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An employee works in your business and is part of your business. A contractor works for your business, as well as earning income from other sources, and operates independently of your business.
Your tax, superannuation, insurance and other obligations will vary depending on whether your worker is an employee or a contractor to your business.
This is a complex issue that requires a detailed explanation. For more information on the differences between employees and contractors, please click on these links to our AustAsia Fact Sheet and the ATO website.
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