Can I hire other people as a sole trader in Australia?
Yes, being a 'sole trader' refers to the legal structure (you are the business), not that you have to work alone. You can hire employees or other contractors. **If you hire employees:** - You must pay them at least the award rate. - You must withhold tax (PAYG Withholding) from their pay. - You must pay superannuation (11.5% as of July 2024) into their chosen fund. - You need Workers Compensation insurance. **If you hire contractors:** - Ensure they have an ABN. - Check if they are 'employees for super purposes' (if they are paid mainly for their labour, you might still have to pay their super). - You don't usually withhold tax unless they don't provide an ABN.
- Sole traders CAN have employees
- Employees require PAYG withholding and Super
- Contractors need their own ABN
- Check 'employee vs contractor' status carefully
- Workers Comp insurance is mandatory for employees