Home – New Forums Money matters Subbies vs Employees

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  • #968013
    Anonymous
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    The subject says it all… when it comes to hiring.. will go hire subbies or employees ? For those businesses who have employees that are largely running around unsupervised in their work, how do you ensure they are following procedure ?

    #1030297
    Adelaidebus
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    Subbies for me!

    I run a team of three (or four if I am away) other staff on a nightly basis on a contract of 2.0 to 4.5 hours per night and it has to be sub contract all the way in terms of liabilities, workcover and licensing.

    I am lucky in my present situation where as all my subbies work other employment (contractors or as employees) which eliminates the possibility of becoming liable for their workcover and super.

    Its quite relevant to what industry you are in, percentage of work undertaken by them to you and what foresight and placement you may have for them.

    In terms of supervision, I make an effort to appear when staff are least expecting to see me and quickly assess what is not being done or being done differantly, sometimes I am pleasently surprised other times not so much.

    Setting small tasks or time based performance is a good way to see if consistency is occuring regardless of which staff perform the duty.

    I hope this helps some :-O

    #1030298
    MattR
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    As per A..Bus above it really can depend on your industry. Some industries are more prone/suitable to it than others eg. building as opposed to say retail.

    The other thing to remember is that you can employ someone in almost any manner you chose, however there are considerations like Fair Work Australia that dictate minimum standards etc. Then there is the ATO, who’s view on this can be quite seperate again and will determine if PAYG withholding and super need to be paid.

    #1030299
    Rhys
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    AdelaideBus,

    Are you sure you have no liability for workcover or super? Just because someone holds down 2 jobs doesn’t make the second employer exempt from stat obligations. If you employ subbies who run their own businesses (have an ABN, raise an invoice on you, etc) then yes you probably are exempt but the wording you use in your post “all my subbies work other employment (contractors or as employees)” suggest that at least some of them are employees elsewhere then contract to you. Without knowing the details impossible to know for sure, but you might want to check up on your legal obligations – if you do make a mistake on this you can get some pretty stiff penalties.

    Cheers, Rhys

    #1030300
    mynwworld5
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    Actually it is totally depends on industry, But i prefer subbies.
    If you are choosing employee then he/she must be very intelligent and hard working.
    Supervision is very important in choosing them.

    #1030301
    Anonymous
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    I’m considering to hire more “help” for my pet sitting, dog walking business so as I can concentrate on the house sits and a couple of long service contracts.

    Plus to have them set up for the hectic Christmas time.

    What if the subbies work for a couple of pet sitting/dog walking businesses ?

    Tho’ a personal question if anyone knows the answer:

    I have my own business (gcpets) however I’m only verbally contracted (nothing officially signed) with qldmodels … yet I’m supposed to draw the majority of my income from qldmodels (or so the owner of that business would like for me to do so)…. legally what percentage of my income is okay with coming from one source before I have to be an employee?

    Also, can the business I’m contracted with set a roster for each week so I will know what to do and when ?

    #1030302
    Simple1
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    Personaly, i will be using ABN holding subs to avoid the hassle of Workcover and super.

    #1030303
    sleepyoz
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    Just because a subby holds an ABN doesnt expempt a business from compliance..there are tests that need to be undertaken to determin whether a person is a sub-contractor or an employee

    Here is a link to the ATO website that discusses the differences and implications

    http://www.ato.gov.au/businesses/content.asp?doc=/Content/4540.htm

    #1030304
    Simple1
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    Fantastic little article,

    Definitely subcontractors for me.

    My subcontractor:

    * are paid for results achieved
    * provides all or most of the necessary materials and equipment to complete the work
    * are free to delegate work to other entities
    * has freedom in the way the work is done
    * provides services to the general public and other businesses
    * is free to accept or refuse work, and
    * is in a position to make a profit or loss.

    my earlier post is just a bonus.

    #1030305
    @HeatherSmithAU
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    Leanne raises a good point.

    My own tax accountant has seen the ATO go after numerous business who employ subbies, and require them to pay them the additional 9% supperannuation.

    That is a huge unexpected cost – if you are not planning / budgetting for it.

    Within my own business, I pay 9% super to sub-contractors.

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