How freelancers get paid
How freelancers get paid is dependant on the Payment type and project type a companies chooses when setting up the gig on Cavalry. In this section we explain these options and what freelancers must do to get paid.
Payment Type and why do they exist?
The ATO (Australian Tax Office) has strict guidelines on what is defined as a contractor project and what is considered temporary employment (A PAYG engagement). If the project fits into the criteria of 'PAYG employment', the employer is required to take the freelancer on as a temporary employee and withhold their income tax and pay their super. While companies can choose to take freelancers onto their own payroll, Cavalry also offers this as a service (Cavalry Payroll). Our 3 engagement types support each scenario:
- Freelancer Invoice - Contractor based Engagement. Freelancer invoices to be paid
- Cavalry Payroll - PAYG based engagement via Cavalry. Complete timesheets to be paid
- Your Payroll - PAYG based engagement via Company. Complete timesheets to be paid
When setting up a gig on Cavalry, companies can also choose one of two commercial models:
- Time based project - Freelancer charges the company based on the number of days worked and agreed day rate
- Fixed price project - Freelancer charges the company based on an upfront fixed price for a defined and agreed set of deliverables. Freelancers are required to submit a fixed price proposal for this project type.
How Freelancers get paid
|Engagement type|| Time based project
Freelancer charges based on number of days worked
| Fixed price project
Freelancer charges based on fixed price for defined and agreed set of deliverables
| Freelancer Invoice
Contractor based engagement
Available in AU/SG/NZ
| Cavalry Payroll
PAYG engagement via Cavalry
PAYG withholding + super
Available in AU only
Engagement types explained in detail
Suits companies who use Freelancers for short distinct ‘Freelance’ engagements.
- Supports projects where the freelancer charges based on days worked (duration) or based on an agreed scope of works (deliverable & milestone based)
- Freelancer invoices the client directly via the Cavalry platform
- Cavalry fees are bundled and invoiced fortnightly
- Does not support Superannuation, Payroll tax and Insurances
- Cavalry fees are invoiced separately
- Available in AU/SG/NZ
Suits companies who care about ATO compliance but don’t want the admin hassle of handling every freelancer engagement.
- Supports projects where the freelancer charges based on days worked
- Cavalry engages Freelancer on behalf of company
- Cavalry supports payroll, superannuation, tax and insurances
- Freelancers complete timesheets which companies must approve
- Fortnightly pay runs to freelancers based on approved timesheets
- Consolidated fortnightly invoicing to companies
- Available in AU only
Suits companies with finance teams able to support payroll.
- Cavalry Timesheets and approvals track projects
- Approved timesheets are bundled into fortnightly payment run
- Available in AU only