Hiring a second shooter

[raptureimages]

Hi all,

I'm looking for some advice on hiring a second shooter for weddings. I have found someone who I believe would be absolutely perfect to shoot with, and I'm trying to work out how to go about paying her, what contracts I need to have in place, etc.

I don't want to call her my "assistant" because I think we're on around the same level as far as skill and experience goes, so I'm not sure if I can hire her on a "sub contract" basis? Can she just invoice me for her time, at an agreed hourly rate? (I don't think a flat rate would be suitable because I'm not at the stage where I'm charging a great deal for weddings, and I'm worried I may end up ripping myself off).

Is there any other advice anyone can give me regarding payment/contracts/the business side of things?

Thanks in advance :-)

Nadia

[soulman]

There are definitions and tests to determine whether a person is an employee or a sub-contractor as far as the ATO is concerned. From what I understand there is a certain amount of flexibility about it, but basically a contractor will tend to use their own tools and do the same kind of work for more than one person or organisation. If your colleague fits these criteria and your accountant agrees, then there is no doubt that having her invoice you is much simpler for you than employing her, because you don't have to worry about withholding PAYG or Superannuation if she is a contractor. She'll need an ABN to invoice you, but they're easy and free.

I am not a fan of contracts and can't see any need for one here. Goodwill and generosity are much better business tools than contracts in my opinion.

[kiwi]

I am a fan of contracts, at least a written agreement by email etc, and definately see a need for one here.

Also, make sure you are covered if they screw up re liability insurance

What the financial arrangement is up to you.

[soulman]

...definately see a need for one here...

To what end? What would such a contract contain and what purpose would it serve? What could it protect the OP from that good sense wouldn't? Not having a go at you or anything. I just really don't see the value. I've been in business for over 15 years and never use them.

[kiwi]

I'm pleased that you've dealt with nice people for 15 years

[soulman]

I'm pleased that you've dealt with nice people for 15 years

Aww, no need to be like that mate. I've had difficult clients and employees and contractors. I just don't think contracts would have protected me from the things I've had to deal with as a result.

[jasevk]

To what end? What would such a contract contain and what purpose would it serve? What could it protect the OP from that good sense wouldn't? Not having a go at you or anything. I just really don't see the value. I've been in business for over 15 years and never use them.

Soulman, you're really leaving yourself wide open by not putting something in writing. All aspects from potential insurance issues, to the ability to sell your work are dangling by a fine thread. I'd suggest that the fact you've had no legal issues in the past 15yrs has not been a result of good management, but rather good luck.

[ricstew]

As a sole trader I invoice for my hours.........get paid the agreed amount per hour ( hopefully) and look after my own tax , insurance, travel etc.......

[kiwi]

I'm glad, really i am, but a written agreement, if doesn't have to be a huge legal document, I thinks a safety net

[Wayne]

Be aware, that unless your 2nd shooter invoices you as a company, ie; PTY LTD or LTD entity, then as a sole trader, if they derive 80%+ of their income from you, then as far as workcover is concerned, you are the employer, and they are an employee not a contractor. If they are trading as a legal entity other than as a sole trader, they are then an employee of their own entity eg-company and they then pay their own workers comp premiums.

There are a number of tests to determine a worker from a contractor with regard to workcover, best to check their site for more info.

I agree with Kiwi, a basic written agreement is essential even in simple business dealings. That way everyone knows what they will/won't get and what expectations/liabilities each party has.

[maccaroneski]

soulman have you ever had a phone conversation discussing commercial terms with a customer, contractor or business partner? Then you have had a contract. Have you ever exchanged emails on a commercial arrangement? The you have had a written contract.

As kiwi suggests above, at the very least, exchange emails hitting the major points.

[raptureimages]

Thanks for the advice guys.

We both have full-time "day jobs" and this will just be a weekend gig, so I don't think it will be a problem with her making less than 80% of her income from me. That's definitely good to know though!

I have a contract written up for an assistant/photographer arrangement, because that's what I was initially looking for. But I definitely want to have this girl on as a second shooter, so I guess it would just be a matter of shifting the wording around a bit, and her and I agreeing on a payment arrangements.

Seems simple enough. Thanks again!

[Longshots]

For the life of me I cannot see why anyone would suggest or ague for not putting something in writing ? A nod a wink, and differently recalled phone conversation is the source of every single dispute I've ever been a mediator to.

Putting your agreement in writing is the sensible thing to do. I'd suggest making sure you cover who owns or has use of the images for their own promotional reasons. As well as covering the issue of Public Liability - ie who is responsible for what (and make sure that you check with your insurer). And finally ensure that your insurance covers you for commercial use of your equipment. Those are the details. The main part will probably be what you're paying the 2nd shooter, how long it covers, and what they should produce for that fee, and in what time frame.

[para]

I agree with kiwi that I would get something in writing just in case something goes belly up.

[jasevk]

If you think that drawing up a written agreement to protect your key interests and reduce potential risks in any sort if business dealing is not a worthwhile exercise, then all I can say is good luck to you mate, when it comes to a financial dispute, your trust and good will means squat. I'd be interested to see your insurers thoughts on this lack of fundamental risk management.

In the OPs specific case, a contract to clearly define who owns the images, who edits, who gets how much etc, is something I would certainly want to have in black and white.

[soulman]

..when it comes to a financial dispute, your trust and good will means squat. I'd be interested to see your insurers thoughts on this lack of fundamental risk management.

Again, you make a lot of assumptions with very little information - you have no idea about our risk management strategies nor how valuable our trust and goodwill have been to us over the years.

I have no trouble with how you want to run your business or what assistance you wish to offer to others. I get that you don't agree with how we do things and that's fine, but I'm not the one seeking advice.

[jasevk]

Again, you make a lot of assumptions with very little information - you have no idea about our risk management strategies nor how valuable our trust and goodwill have been to us over the years.

I have no trouble with how you want to run your business or what assistance you wish to offer to others. I get that you don't agree with how we do things and that's fine, but I'm not the one seeking advice.

If you're comfortable with how you operate then that's great, but I believe your response to the OP is reckless and potentially damaging. But hey, that's just me....

[kiwi]

Most disputes that would be averted if things were in writing are in my experience at this low level of business.

Certainly in my very large Company if we can avoid contractual disputes, we do.

[ctorry]

Getting back to Raptureimages initial question regarding whether you can have somebody contract to you the answer is yes. You will need her to provide you with an ABN (as previously mentioned) which can easily be obtained through www.abr.business.gov.au.

With respect of the employee/contractor debate. There are some tests under the Personal Services Income Tests whether somebody is basically an employee or actually running a personal services business, these tests are as follows:

Initial Test 80% of income tast - this is the principle test and if passed the below tests are no required to be checked. Please note however, that if she is contracting to you through an ABN the test applies to the contracting in which the ABN is held not her employment income. However, as you have mentioned this is only a weekend gig and not a significant amount of income will be earned, I don't think you will have too many issues and besides I think she will probably pass a couple of the tests shown below.

Next set of tests:
Business Premises - does she lease business premises that she operates from?
Employment Test - Does she employ other people for this job?
Tools - Does she provide her own tools (in this case yes if she brings her own camera).
Liable for Rectification - is she liable to rectify any mishaps which may occur (e.g. bad photo that she has taken). This is one test that the ATO does look it in detail so I would make sure that one is adhered to.

However, reading your initial post again it shoulds like you are basically looking to treat her as a partner in the business, in which case you may be better operating as a small partnership. If operating as as a small partnership you are both on a level playing field and you are both looking to grow the business but I would recommend that you have some kind of partnership agreement drawn up (this can something very simple).

A further thought surrounds the business v's hobby tests of the Income Tax Act. This would depend on the way in which you operate for example if you are seeking wedding photography shoots and documenting this in a system fashion then you are probably running a business; however, if you are just doing the odd shoot here and there without having any systems and only doing the shoots as and when they come up you are probably doing a hobby. The difference is that a business is obviously assessed for incoem tax where a hobby is not.

Referring back to other posts, I would strongly recommend that ensure that you have the appropriate insurance (including workcover) in place prior to doing this shoot.

I also recommend that you have some sort of written contract/agreement, this can something very simple (e.g. heads of agreement). In my experience people are nice until something goes wrong. Having said this I understand that their is no substitute for building strong relationships with people and but it also better to have a fall back.

Hope this helps.

Craig.

[jasevk]

Sorry to Soulman for writing my previous post in such a blunt tone... Although I stand by my opinions, I could have put more effort into the wording . At least the Op has a few different viewpoints to ponder!