Are you confused whether your team member is an Employee or a Subcontractor?
Read on to find out whether you're paying your worker correctly.
Within the construction industry, most workers will charge an hourly rate for their time. Value of those hours aside for a moment, there needs to be tax paid on those hours worked. Because of this, IRD have rules around Schedular Payments - but how do you know if the person working for you is a true Subcontractor, or should actually be paid under an employment agreement?
Paying Subcontractors
This is the most common arrangement within the construction industry. In this agreement for labour services, it's a very casual arrangement that allows workers to move around job sites and head contractors easily and without having to give a traditional notice period.
In this set up, the worker is in control. He (or she) can be requested to work by the head contractor, but it's entirely up to the subcontractor whether they are able (or willing) to work or not. The worker may have other work on