{"id":42691,"date":"2023-10-20T15:23:03","date_gmt":"2023-10-20T15:23:03","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/the-terms-sole-trader-independent-contractor-and-freelancer-confuse-me-are-there-really-any-major-differences-between-them-startupsmart\/"},"modified":"2023-10-20T15:23:03","modified_gmt":"2023-10-20T15:23:03","slug":"the-terms-sole-trader-independent-contractor-and-freelancer-confuse-me-are-there-really-any-major-differences-between-them-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/the-terms-sole-trader-independent-contractor-and-freelancer-confuse-me-are-there-really-any-major-differences-between-them-startupsmart\/","title":{"rendered":"The terms sole trader, independent contractor and freelancer confuse me. Are there really any major differences between them? – StartupSmart"},"content":{"rendered":"

This week\u2019s Secret Soloist answer comes from Martin Nally, founder and MD of hranywhere.<\/i><\/p>\n

<\/span><\/p>\n

Fundamentally the answer is no. They are the same \u2013 with different tags. Each will invoice you for services performed.<\/p>\n

 <\/p>\n

None of them are your employees. All of them are contracted by you to deliver a project outcome.<\/p>\n

 <\/p>\n

The sole trader moniker is simply indicating that they carry out business on their own.<\/p>\n

 <\/p>\n

The freelancer is basically a contractor in Australia, meaning they own their business.<\/p>\n

 <\/p>\n

The independent contractor is, as it states, a contractor engaged on an independent basis and not an employee.<\/p>\n

 <\/p>\n

It is recommended that each of them supply you with their ABN. It is free to get an ABN that is basically just for the business name.<\/p>\n

 <\/p>\n

You can safely use any of the resources that go under the three banners. If it is for a short time then document the scope and have a separate document for each engagement.<\/p>\n

 <\/p>\n

One of the most important pitfalls to avoid when it comes to categorising your workers is \u2018sham contracting.\u2019<\/p>\n

 <\/p>\n

The Fair Work Ombudsman is currently conducting audits of three industries \u2013 hair and beauty, cleaning and call centres \u2013 in a crackdown on sham contracting.<\/p>\n

 <\/p>\n

This occurs when an employee is made to believe that they are providing a contract for services, allowing a business to avoid paying them superannuation, leave or fair wages.<\/p>\n

 <\/p>\n

Whatever you do, don\u2019t fall foul of the Fair Work Ombudsman in this area.<\/p>\n","protected":false},"excerpt":{"rendered":"

This week\u2019s Secret Soloist answer comes from Martin Nally, founder and MD of hranywhere. Fundamentally the answer is no. They<\/p>\n","protected":false},"author":2,"featured_media":60195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/42691"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=42691"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/42691\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/60195"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=42691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=42691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=42691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}