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.