Employee or Contractor?
You may be taking on a new employee or contractor. Knowing the difference between the two is important.
A brief summary of how the two vary:
- Employees are entitled to annual leave, sick leave and public holidays, whereas Contractors are not.
- You deduct then pay your employee’s PAYE on their behalf, whereas in some cases it is up to the contractor to pay their own tax (with the exemption of schedular payments).
There are certain parameters which help determine whether someone is truly an employee or contractor – If you’re unsure you can find out more here.