1.1.E.87 Employee, private contractor

Usage

This definition applies to all payments.

Definition: employee

An employee is someone who is:

  • under a contract OF service to an employer, AND
  • a salary or wage earner (1.1.S.20), AND
  • subject to PAYG tax deductions.

Anyone who is solely an employee is not self-employed. The employees of a self-employed individual are wage or salary earners.

Definition: private contractor

A private contractor is someone who is under a contract FOR services.

Policy reference: SS Guide 1.1.U.30 Unemployed (NSA), 4.3.3 Income from employment

Last reviewed: 7 November 2016