Full time |  Part time |  Casual |  Contractors |  Payment |  TFN, super and more

Being employed will mean you are receiving a wage or a salary, and you could be full-time, part-time, casual, a contractor or consultant. But what do they all mean? And how does that affect how you get paid – and how you are taxed?

Full-time
A person employed on a permanent basis, working the award-prescribed minimum hours per week, paid regularly, and entitled to all the benefits and leave entitlements.

Part-time
A person employed on a permanent basis, working regular hours that are within a minimum and maximum defined number of hours per week, and entitled to the benefits relative to the number of hours worked. Part-time employees are entitled to the same working conditions as full-time employees, including, generally, the same hourly rate of pay.

Casual
Casual employees work on an hourly or daily basis, but generally work less hours than the ordinary weekly working hours of a full-time employee. To compensate for missing out on the benefits awarded full and part-time employees, extra loading is added to a casual's pay. Casual employees can work the same number of hours or shifts as a full-time worker and still not be considered permanent. Some workplaces however may be required to offer full-time work to a casual who works ordinary hours after a certain sustained period of doing so.

Contractor
Generally speaking, contractors (or consultants) are self-employed people employed for a specific task, at an agreed price, with a specific goal in mind, and often over a pre-determined timeframe. They set their own hours of work and take care of their own tax obligations. They aren't paid a salary or hourly rate, and because they aren't an employee, a contractor's position is more easily terminated than a 'permanent' employee. Being a contractor does have tax implications – find out more here about the implications for you and your employer. If you're interested in becoming an contractor and want to find out more, read 'So you want to be a contractor'.

Payment
Wages and salaries are the most common types of employee payments. Income is considered a salary if the work is regular and wages if it is not regular.  Both must be declared in full on your tax return – unless specifically exempted.

Tax file numbers, superannuation and more
When you started your job you would have been asked to provide your tax file number, as well as your superannuation fund membership details. If you can't find your tax file number, or need to apply for one, here's how. By providing your employer with your tax file number, you'll be ensuring that they have all the information they need to withhold the correct amount of tax from the payments of your salary or wage. Your employer then sends this to the Tax Office on your behalf through the PAYG withholding system. If you're not sure how much tax is being taken out you can use our rates and tables tax guide.

When the end of the financial year comes around, you'll need to lodge a tax return.  As a taxpayer, you also have a number of rights, and obligations which you should be aware of, including what to do if you have a complaint regarding your tax, or about penalties.

Some salaries include something called fringe benefits – find out more about what fringe benefits are, and how they work, here.

Related reading (and bonus video): Your first job

Last reviewed 2/08/2012

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