Contractor v's Employee whats better ?

Question

Hey there i have just started my own cleaning business 6 weeks ago in Australia and i have snagged myself some really huge jobs that i cant do on my own and now i need to hire some staff.

Can anyone help me out to what is better to employ staff on a regular basis or contractors ?

Thanks heaps

Answer 1

Contractors generally pay their own taxes, and they are paid on a job by job basis

Employees, the employer has to track their hours and pay the taxes for them. And, in general, employees are paid by the hour.

So, if it takes one person longer to complete the same task as someone else they would in essence be paid more if they were an employee. However if they're "contractors" they would be paid the same regardless of time worked.

It would be easier as an employer to hire contractors than employees.

Answer 2

Employ contractors to begin with. See how many employees the contractor puts on the job and the wages paid to the workers, statutory payments on Labor welfare etc. ( You will be getting itemized bills). Once you have a clear idea of the right numbers and wages, start employing people directly but on specific period contract employment. After zeroing in to the right kind of people, employ THEM on regular basis.