A very Merry Christmas from ESBEC Board & Staff

Contractors or employees? The simple guide to tax laws

The Ten Commandments of Customer Service

Things to do before investing in a franchise

ESBEC wins Women in Business Mentor Program for 2004

Certificate IV in Workplace Training And Assessment
 

A very Merry Christmas from ESBEC Board & Staff

WOW what a year! Yes, I can hear agreement from everyone… Next year is going to be the best ever!

On behalf of the Board of The Eastern Suburbs BEC & the staff I would like to wish you all a very Merry Christmas and a prosperous New Year.

On a personal note I would like to thank everyone who has believed in me personally and has contributed to all the good things that ESBEC has been able to achieve this year. Without this support it would be impossible to do the job. Thank you very, very much.

As with last year we have decided to not have Christmas drinks in the office, but will hold our New Year's drinks in the office on 21st January 2003. We will send you more details in early January.

All the best for 2004!

David Baumgarten

Centre Director, Eastern Suburbs Business Enterprise Centre.

Contractors or employees? The simple guide to tax laws

Over the past three months we have seen a steady increase in enquiries from micro business operators seeking clarification in relation to the ATO tax laws for contractors and consultants.

At our recent Women In Business panel of experts, we had two representatives from the ATO who spoke about this issue. The discussion that followed with our audience highlighted the need to address this issue with the wider community.

We have been provided with two tax ruling extracts that explain these laws to the layman in plain English. (If you would like a copy please contact the office on 9369 2844)

In summary, you need to go through 10 points looking at the features of the relationship, plus complete a personal services business self-assessment guide and checklist. This checklist is on the ATO website and incorporates four steps:

Step 1: Personal Services Income

Do you receive income that is mainly a reward for personal efforts or skills?

Step 2: Results test

Do you meet the results test?

Step 3: The 80% rule

Does 80% or more of your personal services income come from one client?

Step 4: The other tests

Do you meet one or more of the following tests?

• Unrelated clients
• Employment, or
• Business Premises

Features of a relationship:

1. Lawful authority to command.

Employee: Under a contract of service, the payer usually has the right to direct the manner of performance. Of course, where the nature of the work involves the professional skill or judgment of the worker, the degree of control over the manner of performance is diminished. What is important is the lawful authority to command that rests with the payer.

Contractor: The hallmark of a contract for services is said to be that the contract is one for a given result. The contractor works to achieve the result in terms of the contract. The contractor works on his/her own account.

2. How the work was performed

Employee: Tasks are performed at the request of the employer. The worker is said to be working in the business of the payer.

Contractor: An independent contractor enters into a contract for a specific task or series of tasks. The contractor maintains a high level of discretion and flexibility as to how the work is to be performed. However, the contract may contain precise terms as to materials used and methods of performance and still be one for services.

3. Risk involved.

Employee: An employee bears little or no risk. An employee is not exposed to any commercial risk. This is borne by the employer. Further, the employer is generally responsible for any loss occasioned by poor workmanship or negligence of the employees.

Contractor: An independent contractor stands to make a profit or loss on the task. They bear the commercial risk. The contractor bears the responsibility and liability for any poor workmanship or injury sustained in performance of the task. Generally, a contractor would be expected to carry their own insurance policy.

4. Place of employment

Employee: A worker under a contract of service will generally perform the tasks on the payer's premises using the payer's assets and equipment.

Contractor: A contractor generally supplies all his or her own assets and equipment.

5. Hours of work

Employee: An employee generally works standard or set hours.

Contractor: An independent contractor generally sets their own hours of work.

6. Leave entitlements

Employee: The contract generally provides for annual leave, long service leave, sick leave and other benefits or allowances.

Contractor: Generally, an independent contract does not contain leave provisions.

7. Payment

Employee: An employee is generally paid on an hourly rate, piece rates or award rates. Contractor: Payment to an independent contractor is based upon performance of the contract.

8. Expenses

Employee: An employee is generally reimbursed for expenses incurred in course of employment.

Contractor: An independent contractor incurs their own expenses.

9. Appointment

Employee: An employee is generally recruited through an advertisement placed by the employer.

Contractor: An independent contractor is likely to advertise their services to the public at large.

10. Termination

Employee: An employer reserves the right to dismiss an employee at any time (subject to State or Federal legislation.

Contractor: An independent contractor is contracted to complete a set task. The payer may only terminate the contract without penalty where the worker has not fulfilled the conditions of the contract. The contract usually contains terms dealing with defaults made by either party.

11. Delegation

Employee: An employee has no inherent right to delegate tasks to another. However, there may be a power to delegate some duties to other employees.

Contractor: An independent contractor may delegate all or some of the tasks to another person, and may employ other persons.

The Ten Commandments of Customer Service

I came across the following the other day and thought that they would be of assistance in explaining the importance of customer service to staff.

Commandment One: Bring 'em back alive

Ask customers what they want and give it to them again and again

Commandment Two: Systems, not smiles

Saying please and thank you doesn't ensure you'll do the job right the first time, every time. Only systems guarantee you that.

Commandment Three: Under promise, over deliver

Customers expect you to keep your word. Exceed it.

Commandment Four: When the customers asks, the answer is always yes

End of story.

Commandment Five: Fire your consumer relations department

Every employee who deals with clients must have the authority to handle complaints

Commandment Six: No Complaints? Something's wrong

Encourage your customers to tell you what you're doing wrong

Commandment Seven: Measure everything

AFL Teams do it, swimmers do it & League teams do it .You should too.

Commandment Eight: Salaries are unfair

Pay people like partners.

Commandment Nine: Your mother was right

Show people respect. Be polite. It works.

Commandment Ten: Clone them

Learn how the best really do it; make their systems your own. Then improve them.

Things to do before investing in a franchise

Franchising in Australia is regulated by a mandatory Franchising Code of Conduct. The code is contained in a regulation made under the Trade Practices Act and is therefore a Commonwealth Law.

Disputes in franchising usually occur because a franchisor has not provided adequate information, or else has provided information that could be misleading.

The most important steps to take before investing in a franchise are to seek proper legal and financial advice. Read the disclosure document and the franchise agreement carefully and make sure you understand them.

Read the code and explanatory booklets on franchising (available from the ACCC). If you are in dispute with your franchisor, seek help from the Office of Mediation Advisor in Franchising, on 1800 150667 or visit www.mediationadvisor.com.au

ESBEC wins Women in Business Mentor Program for 2004

ESBEC has been selected to run the 2004 Women in Business Mentor Program, commencing February/March 2004.

This program assists emerging women business owners to grow their business by linking them with experienced business people.

We are now accepting applications for both mentors and mentorees.

For more information see our Women in Business Mentor Program page or email narelle@easternsuburbsbec.com.au

Certificate IV in Workplace Training And Assessment

Do you present to groups or individuals? Would you like to look more professional? Need some tips to make that presentation? Then the Certificate IV in Workplace Training and Assessment is for you.

Not only do you learn how to present, you also will acquire the skills to teach to a group. We offer a practical based program with learning through group exercises - so everyone gets involved.

We offer you the choice of doing the assessments that allow you to be awarded the full certificate and expand your business into delivering accredited (nationally recognized) courses.

If you would just like the skills without the assessments we can provide you with a statement of attendance. It's your choice.

The course is being offered over five Saturdays commencing 7th February & six Wednesdays commencing 11th February. Classes are no more than ten clients to ensure personal attention is given to your learning outcomes.

For more details and to book online go to our Training Calendar

                                                             Back to Top