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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.2 Office or employment /Determining employment status / E4.215 Basis of payment—employment status effect
Commentary

E4.215 Basis of payment—employment status effect

Personal and employment tax

The average employee is paid a regular sum for a specified period of time (eg a week or a month), which is fixed either by reference to that period (or shorter periods completed within it, as in the case where an individual is paid weekly by reference to an hourly rate), by profits earned or by business generated during that period, or by reference to goods produced during that period. This regular income may be supplemented by a bonus similarly calculated, or voted ex post facto. No demand or other request is required on the part of the employee (although the non-production of adequate records, such as a time sheet or a production schedule may cause payment to be temporarily withheld, pending proper quantification).

The normal practice of an independent contractor is to send in bills for work as done or goods as supplied. The bills may be sent out at regular intervals, whether or not the task of which the invoiced work forms a part is completed. On the other hand, they may only be

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