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Key differences to consider for employee vs. contract work
If you’re contemplating a job change—or even a career shift—you’ve likely considered opportunities for both full-time employment and fixed-term contracts. At first glance, these roles might seem similar, with comparable responsibilities and requirements. So, what’s the actual difference? And is one better than the other?
The Short Answer
It depends (yes, we know; that’s not very satisfying).
The Long Answer
Choosing between full-time employment and a fixed-term contract comes with its own set of pros and cons. Which one is right for you will ultimately depend on your current situation, career goals, and values.
Let’s break it down:
An employee:
Works for someone else’s business.
Hired to perform specific tasks on an ongoing or open-ended basis.
Receives a salary, superannuation contributions, paid sick leave, paid annual leave, and other benefits.
Typically follows the employer’s direction on how, where, and when to work.
Has their tax obligations managed by the employer.
A contractor:
Operates as a self-employed sole trader with an Australian Business Number (ABN).
Engaged by a business to deliver a specific task or outcome.
Works under a contract with a defined time frame, end date, and agreed price.
Enjoys more flexibility in working hours and location.
Handles their own tax calculations and payments.
Which one is for you?
As a general rule, if you’re seeking stability, mentorship and less administrative hassle, a full-time employee role might be your best bet. On the other hand, if you crave flexibility, variety and potentially higher earnings, a contracting role could be more your style.
The right choice depends on where you are now and where you want to go. Different stages of life may call for different employment styles.
At MJM, whichever path you choose, we can handle all your accounting needs—from managing expenses in real-time to lodging your income tax and BAS returns on time without the burden of dealing with taxes.
Got questions? Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
You can connect with MJM Accountants on Facebook and if you’re already a client, we encourage you to post a review on our Google profile.
Beyond the screen: Navigating scams, cyber safety and identity protection in the digital world
Last year the Australian Tax Office (ATO) faced an unprecedented surge in scams orchestrated by impersonators, with a staggering 25,609 reported cases in the last financial year alone—an alarming 25% increase from the previous year. This unsettling trend underscores the growing sophistication of cyber criminals and the urgent need for heightened vigilance among taxpayers.
Cyber criminals employ deceptive tactics, such as:hyperlinks embedded in messages, to redirect unsuspecting individuals to counterfeit websites. Once there, personal information is harvested, or worse, malware is installed, jeopardising the security and privacy of unsuspecting victims.
In response to this evolving threat , the ATO is removing hyperlinks from all outgoing SMS this year. This move aims to empower individuals to discern legitimate messages from fraudulent ones.
The ATO may use SMS to contact you, but they will never include links to log in pages. If you want to access the ATO’s online services, always type my.gov.au or ato.gov.au into your internet browser yourself.
Protect your personal information from identity thieves. Do not give out your TFN, date of birth or bank details unless you trust the person you are dealing with, and they genuinely require these details.
Verify or report a scam. What to do if you get a phone call, text message or email that you're not sure is genuine.
Remember, vigilance is our strongest defense against cyber threats. Let's unite in our commitment to safeguarding our financial security and privacy in the digital age.
Got questions? Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
You can connect with MJM Accountants on Facebook and if you’re already a client, we encourage you to post a review on our Google profile.
From data to decisions: Leveraging AI in your business
Are you leveraging artificial intelligence (AI) for unlocking devices, providing customer support, or virtual assistance within your business operations? It's crucial to grasp the potential challenges inherent in working with AI systems and how to effectively address them.
Recent guidance from the Australian Signals Directorate’s Australian Cyber Security Centre (ASD’s ACSC) on Engaging with Artificial Intelligence can serve as a valuable resource to ensure the secure integration of AI in your business.
This publication, endorsed by the international intelligence community, offers essential advice tailored to medium and large businesses on securely interacting with AI. The ASD’s ACSC presents a set of actionable steps to help you navigate the complexities of AI implementation securely:
Align the advice on engaging with AI with the Essential Eight framework to fortify the security of your AI system.
Familiarise yourself with the limitations of your AI system and provide comprehensive training for your staff to utilise it securely.
Understand the impact of the AI system on your organisation’s privacy and data protection obligations.
Evaluate whether AI services utilised in your organisation or supply chain are inherently secure-by-design.
Ensure your business has appropriately qualified personnel to establish and maintain the security of your digital systems.
Stay ahead of cybersecurity risks by delving into the details of Engaging with Artificial Intelligence and implementing its recommendations in your business operations. Your commitment to AI security will safeguard your business against potential threats and pave the way for enhanced productivity and innovation.
Got questions? Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
You can connect with MJM Accountants on Facebook and if you’re already a client, we encourage you to post a review on our Google profile.
Source: Do you use artificial intelligence in your business? (ATO)
Partnering for compliance excellence
Let's explore how you can supercharge your business compliance journey.
Embrace your compliance superpowers
With great power comes great responsibility and as a business owner, you have the power to ensure your operations comply with the law. Partnering with a knowledgeable business advisor (like our team) can provide tailored insights and personalized strategies to navigate the intricacies of compliance.
Unleash the force of Fair Trading
Businesses must navigate fair trading laws to ensure ethical practices and consumer protection. By implementing a compliance program tailored to your business's needs, you can mitigate risks, enhance transparency, and build trust with customers and stakeholders.
Forge alliances for success
Even superheroes need allies, and in the business world, collaboration is key to overcoming compliance challenges. Engage with industry associations, seek advice from legal experts and leverage government support services to strengthen your compliance efforts. By joining forces with like-minded businesses and tapping into available support networks, you can access valuable insights and stay ahead of regulatory changes.
Navigate with confidence
Navigating the regulatory landscape may seem daunting, but with the right tools and knowledge, you can embark on your compliance journey with confidence. Stay informed about legislative updates, invest in ongoing education and training for your team, and regularly review and update your compliance practices to adapt to evolving requirements.
Business owners can benefit from partnering with a knowledgeable business advisor. By harnessing the resources available and tapping into our expertise, you can equip yourself with the knowledge and tools needed to conquer compliance challenges and chart a course towards sustainable growth and business success!
Got questions? Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
You can connect with MJM Accountants on Facebook and if you’re already a client, we encourage you to post a review on our Google profile.
Start, register or close your business with confidence
Whether you're looking to kickstart your own business, register an existing venture or even close down operations, navigating the business landscape can be daunting. Fear not! We can work with you to ensure you’re well-informed at every stage of your business journey.
Starting a Business
When embarking on a new business venture, it is crucial to lay down the right foundations from the outset.
Begin by brainstorming and refining your business idea. Conduct thorough market research to understand your target audience, competitors, and industry trends.
Determine the most suitable business structure for your venture, whether it's a sole trader, partnership, company, or trust. Each structure has its own legal and tax implications.
Head to the ATO website to register your business name and obtain an Australian Business Number (ABN). This step is essential for tax and business purposes.
Familiarise yourself with your tax obligations including Goods and Services Tax (GST), Pay As You Go (PAYG) withholding and income tax.
Depending on your industry and location, you may need to obtain specific licenses and permits to operate legally.
Registering a Business:
If you're already operating a business and need to register it for tax purposes, the process can be straightforward with the right guidance.
Ensure your business meets the eligibility criteria for registration. Generally, you'll need to have a business structure in place and be conducting business activities in Australia.
Apply for an ABN through the ATO's online portal. Provide accurate information about your business structure, activities, and contact details.
Register for relevant taxes, such as GST, PAYG withholding and fringe benefits tax (FBT), if applicable to your business operations.
Maintain accurate records of your business income, expenses and transactions to fulfill your tax obligations and facilitate financial management.
Closing a Business:
While closing a business can be a challenging decision, it's essential to follow the appropriate procedures to wind up operations responsibly.
Notify the ATO and other government agencies of your intention to close your business. Update your business details and tax records accordingly.
Settle any outstanding debts, taxes, and obligations associated with your business. This includes paying outstanding tax liabilities and finalizing financial accounts.
Cancel your ABN, GST registration and any other business licenses or permits that are no longer needed. This ensures compliance with regulatory requirements.
If you have employees, follow the appropriate procedures for terminating their employment contracts, including providing notice and finalising payroll obligations.
To navigate the process of starting, registering or closing a business with confidence, seek professional advice from our team with valuable insights tailored to your specific circumstances. In the meantime, you can leverage the resources available on the ATO website.
Got questions? Give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
You can connect with MJM Accountants on Facebook and if you’re already a client, we encourage you to post a review on our Google profile.