This question is often raised in both the private sector and government when an employee obtains a contract. When it is possible to direct the work, when there is control over an individual's work, when there is only one source of revenue, the Department of Revenue can determine that the individual is not a contract employee, but rather an employee. Once a person is an employee, he or she is entitled to all the benefits, and the source deductions and all the contributions by the employer must be made. This can also mean that as an employee, the individual cannot deduct some expenses that he or she could deduct as a contract worker. So there are some tax implications for both the employer and the employee.
We have therefore said that the government must be careful within these arrangements not to create an employer-employee relationship with the contract holders.