What’s included in payroll services for freelancers?

Typical inclusions are payroll setup and pay categories, employee/contractor onboarding, timesheets or awards mapping, pay runs, PAYG withholding, superannuation calculations and clearing house lodgement, Single Touch Payroll (STP) reporting each pay, and EOFY finalisation statements.

When do I have to pay super and report STP?

Super is generally due quarterly by the 28th of the month after quarter-end (SG rate 11.5% from 1 July 2024). STP must be reported on or before each pay day. Most employees need finalisation by 14 July. Concessions may apply for closely held payees in small businesses.

How do I tell if a contractor is really an employee for super?

If a contractor is paid mainly for their labour and works personally (not delegating), they are often entitled to super even if they have an ABN. The ATO’s contractor vs employee tests and SGR 2005/1 guidance apply—get advice if unsure.

What registrations do I need before running payroll?

Most employers need PAYG withholding registration with the ATO, superannuation clearing house access, STP-enabled payroll software, and workers compensation/WorkCover where required. Some will also need state payroll tax registration if they exceed thresholds.

Can payroll be processed monthly for a freelancer business?

Yes, many freelancer businesses pay monthly, but STP must still be lodged on or before the actual pay date and super must be paid by the due dates. Award or agreement rules may also set pay frequency and payslip requirements.

What happens if a supplier has no ABN?

If a supplier doesn’t quote an ABN and no exemption applies, you may need to withhold at the top marginal rate (currently 47%) and report that at W2 on your BAS/IAS. This is separate from employee payroll.

Freelancer Accountant | Payroll Help for Freelancer

Q: Do freelancers need payroll?

If you are a sole trader, you don’t pay yourself wages through payroll. You can still have payroll if you hire staff or pay contractors who are deemed employees for super. If you operate through a company or trust, payroll usually applies to wages or director fees paid to you and any staff (with STP reporting).

How this usually works

Good payroll services for freelancers begin with a quick scoping call and a light review of your structure, software and people. The aim is to identify who is paid, how often, and which obligations apply (STP, super, awards, workers comp, payroll tax thresholds).

From there the work typically runs in three phases:

Setup and onboarding: Confirm registrations, add employees/contractors, set pay items, leave, super and bank details; connect a super clearing house; test STP.
Run and reconcile: Process pay runs, lodge STP on or before payday, pay super by the due date, reconcile W1/W2 to your BAS/IAS.
Year-end wrap: Reconcile totals, finalise STP, issue income statements in myGov, review changes to awards and super for the new year.

Notes by structure:

Sole traders: You don’t payroll your own drawings. Payroll applies only to staff or contractors deemed employees for super.
Companies/trusts: Owners are often paid wages or director fees through payroll. STP applies to all employees and closely held payees (with some concessions).

Set up freelancer payroll Read payroll guides

Australian context to keep in view

PAYG withholding registration is needed before withholding from employees, directors and some contractor payments.
Single Touch Payroll (STP Phase 2) must be lodged on or before each pay day via an STP-enabled system.
Superannuation Guarantee is 11.5% from 1 July 2024. Super is generally due quarterly by the 28th of the following month. “Payday super” is planned to commence from 1 July 2026.
Contractor vs employee: Contractors paid mainly for labour can be entitled to super even with an ABN (ATO SGR 2005/1). If a supplier doesn’t quote an ABN and no exemption applies, withhold 47%.
Sole traders cannot pay themselves wages; companies and trusts generally do via payroll (including closely held payees).
Report W1/W2 on BAS or IAS. Workers compensation/WorkCover and state payroll tax may apply depending on state and thresholds.

Check my obligations

What to compare before you commit

Scope

Confirm setup, onboarding, awards mapping, super clearing house, pay runs, STP per pay, EOFY finalisation, and W1/W2 reconciliation are included.

Software fit

Look for confidence with your stack (e.g. Xero, MYOB, QuickBooks, Employment Hero, Deputy, Tanda) and clear workflow explanations, not just brand names.

Turnaround and communication

Agree pay calendars, approvals, backup support for urgent runs, and who resolves ATO or super clearing house errors.

Commercial fit

Compare fixed vs per-employee pricing, support hours, and whether you want payroll-only or integrated bookkeeping/BAS support.

Get a scoped quote

What’s included in freelancer payroll services

Registrations: PAYG withholding, super clearing house access.
Payroll setup: pay items, tax scales, super categories, leave accruals, bank feeds for wages and super.
Onboarding: TFN and super choice forms, right-to-work checks, award/Agreement mapping for casuals.
Pay runs: timesheet imports, review and approvals, payslips issued on time.
Super: SG calculation, clearing house lodgement, variance checks and rectifications.
STP: per-pay lodgements, error resolution, end-of-year finalisation to ATO.
Reporting: payroll summaries, W1/W2 tie-outs, leave and labour-cost dashboards.

Need a broader setup? Combine with bookkeeping for freelancers or tax support for freelancers so payroll ties neatly into BAS and year-end.

Bundle payroll with bookkeeping

Best next steps

Write down who you pay, how often, and any deadlines (overdue super, missed STP, onboarding new staff, switching software). That becomes the basis for a clear, fixed-scope quote.

If you’re still comparing options, use the payroll services pillar for a broader view, then drill into the freelancer pages linked here to see how the work looks in your context.

When ready, send a short brief and request setup plus the next two pay cycles so you can assess quality, speed and communication.

Send a quick brief Shortlist providers

Frequently asked questions

Do freelancers need payroll?

Sole traders don’t payroll their own drawings. Payroll applies if you hire staff or have contractors entitled to super. Companies and trusts usually run payroll for owners and employees and must lodge STP.

What do I need to set up payroll correctly?

PAYG withholding registration, STP-enabled software, super clearing house access, TFN and super choice forms, and any award classifications or pay rules that apply. Many freelancers also set up timesheets and approvals to streamline pay runs.

How often do I pay super and lodge STP?

Super is generally due quarterly by the 28th after quarter end (SG 11.5% from 1 July 2024). STP must be lodged on or before each payday. EOFY STP finalisation is usually due by 14 July for employees; concessions can apply to closely held payees.

Are contractors ever entitled to super?

Yes. If a contractor is paid mainly for their labour and works personally, super may be required even if they have an ABN. If unsure, get an assessment before you process pay.

What if a supplier doesn’t provide an ABN?

Where no ABN is quoted and no exemption applies, you may have to withhold 47% and report it. This is separate from paying employees via payroll.

Can I run payroll monthly?

Yes, provided you meet STP timing and award/fair work requirements and pay super by the due dates. Many freelancer businesses choose monthly or fortnightly cycles.

Get answers for your setup

Payroll services for freelancers (Australia)