In order to be classified as an independent contractor for tax purposes you must have an ABN. This is also required on the tax invoice that Squaddle will send on your behalf to your business clients. Getting an ABN is free and easy and can be completed online here
As an independent contractor you are not entitled to any sick leave or annual leave, however you may be entitled to superannuation if you earn more than $450 in one month with the same business client. In these circumstances, Squaddle will transfer the entitlement along with your superannuation details to the business client for payment
Squaddle charges a flat rate fee of 20% of the contract value of the gig (inclusive of GST) that covers the provision of the Squaddle service platform, the escrow service and the invoicing service that it provides on your behalf.
The minimum amount that you can quote for a gig is $67.50. This is comprised of a minimum equivalent rate of $22.50/hour and a minimum gig length of 3 hours.
Only the business that has posted the gig can view your quote for the gig. You can also communicate with the business directly and confidentially through the app.
Squaddle is a digital platform that connects contractors and business clients. However, when you set up your profile, one of your options is to to make yourself available for part-time or full-time employment opportunities if that is what you wish to do. Business clients who initially engage you as a contractor may wish to offer you a role as an employee. This is a free service provided to business clients.
Payment for all completed gigs is made within 48 hours of completing the gig. Squaddle will reconcile your escrow payment and deduct its agreed fee so that you receive a final payment as well as a tax invoice from Squaddle (which you can deduct as an expense for your tax).
The price you quote for your gig is up to you. The minimum gig quote for a 3 hour shifts is $67.50 however a skilled and experienced ‘Squaddler’ may choose to quote for gigs at a significantly higher rate. Business clients that use the platform are looking for highly skilled resources that fill gaps in their resource needs and they are prepared to pay well to fill those gaps. The cheapest quote is rarely awarded the gig. Also be aware that your quoted price also includes the fee that you are charged by Squaddle for invoicing services and maintenance of the platform. This fee is easily separated for you so you can see just what you will end up with in your pocket at the end of a gig.
Paying tax on income you earn as a contractor is your responsibility. For Australian residents the first $18,200 earned each year is tax free. If you earn in excess of this or you use Squaddle as a means of supplementing other income that together exceeds this limit then you will need to pay tax. As a contractor you will need to pay your tax at the end of the financial year. Squaddle makes it easy to see how much you have earned by giving you a brief report on your earnings. The fee that Squaddle charges you for the provision of the invoicing service and platform is generally also tax deductible.
If you earn more than $75,000 as an independent contractor per year you are required to register for GST. This charge will be levied on top of your quote to each business client that you have. The Squaddle app allows you to nominate if you are registered for GST. Please note that GST registration only applies to those earnings that you receive as an independent contractor through your ‘micro business’ not earnings that you may receive as an employee working somewhere else. For more information on GST please take a look at the government web site:
Your privacy is very important to us and Squaddle protects your personal data and information. Read our statement to learn more.