Page 18 - GA Maclachlan Tax Guide 2024

Common law dominant impression test grid

Indicator Suggests employee status Suggests independent
contractor status
Control of Employer instructs (has right Person chooses which tools/
manner of to) which tools/equipment, equipment, or staff, or raw
working or staff, or raw materials, or materials, or routines, patents,
routines, patents, technology technology
Payment regime Payment by rate × time- Payment by a rate × time-period
period, but regardless of output but with reference to results, or
or results payment by output or “results in
a time period”
Person obliged to be render
Person, as employer, can
Person who
Near-conclusive must render the service personally, hires & fires delegate to, hire & fire own
only with approval
employees, or can subcontract
service
Nature of
Person only present and
Person obliges to be present,
obligation to
be done
work even if there is no work to performing work if actually
required, and chooses to
Employer Person bound to an exclusive Person free to build a multiple
(client) base relationship with one employer concurrent client base (esp�
(particularly for independent if tries to build client base –
business test) advertises etc�)
Risk/Profit & Employer bears risk (pays Person bears risk (bad
loss despite poor performance/ workmanship, price hikes, time
slow markets) (particularly for over-runs)
independent business test)
Instructions/ Employer instructs on location, Person determines own work,
Supervision what work, sequence of work sequence of work etc� Bound by
etc� or has the right to do so contract terms, not orders as to
what work, where, etc�
Person not obliged to make
Reports
Control through oral/written
Persuasive Training reports reports
Worker uses/trains in own
Employer controls by training
the person in the employer’s
methods methods
Productive time Controlled or set by employer/ At person’s discretion
(work hours, person works full time or
work week) substantially so
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