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Page 1: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

Contracting Options

Page 2: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

We have been placing technology and digital people since 1973, and our focus hasn’t

changed. If you are looking for a new technical challenge, or wanting to expand your career,

our recruiters can connect you with some of the best technology, digital and SAP jobs in

Australia. We have many preferred supplier agreements with government and blue-chip

organisations, giving candidates access to the best opportunities in the market.

As Australia’s leading provider of technology, digital and SAP talent solutions, Paxus manages one of the largest independent contractor workforces in Australia - comprising 2,000 contractors.

Contracting Options 1

Page 3: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

PR0FESSIONAL SERVICES

When you join Paxus as a contractor, you

are allocated your very own Contractor Care

Consultant, who will provide you with outstanding

customer service, be responsive to your needs

/ requests, and ensure that your contracting

assignment with Paxus is a positive and rewarding

experience.

No matter which contracting option you decide

to engage with us, you will have access to the

following benefits:

• Weekly pay on receipt of approved timesheet

• Electronic transfer of payments to a nominated

bank account

• Email confirmation of payment details

• Payroll queries answered promptly

• A dedicated Contractor Care Consultant to

attend to your day to day requests

• Opportunity to provide feedback via online

surveys

• Negotiation to extend contracts commencing

between 4-6 weeks prior to expiry

• Reimbursement of client approved expenses

• WHS and client on-boarding inductions

• Annual online footy tipping competition - cash

prizes

• Annual social functions

• Immigration 457 visa sponsorship performed

by a professional Migration Agent

• Regular face-to-face meetings with Account

Managers

• Access to 2,500+ world class tech courses with

accreditations - online 24x7

• Access to leading tech authors knowledge

base of 10,000+ books - online 24x7.

We make an effort to get to know our contractors - allowing us to match your skills, preferences, personality and ambitions with likemined employers.

Contracting Options 2Contracting Options 2

Page 4: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

PR0FESSIONAL SERVICES

We want to give you engagement options that

will suit your personal and financial situation. As a

Paxus contractor, you have access to the following

engagement options:

• PAYG Contracting

• Pty Ltd Company

• Management company (commonly known as

an umbrella company).

Which option is best for you?

When making your decision, consider your

personal and financial circumstances carefully.

The following guide is intended to be used as

an indicative outline only - we encourage you

to undertake your own due diligence and seek

professional information or advice from your

financial advisor or accountant before deciding

on your preferred engagement method. If you are

an Australian resident, you are able to choose any

option that best suits your needs. Seek further

advice if you are a non-resident, however most

non-residents choose to contract as a PAYG.

When you contract with Paxus, we give you choices and options. It’s all about you - that’s why you can decide which contract engagement suits you.

Contracting Options 3Contracting Options 3

Page 5: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

Contracting Options 1

PR0FESSIONAL SERVICES

This is the simplest of the three engagements. If

you prefer to sit back and let us take care of things,

this is your best option! Paxus will take care of

the time consuming and costly administration

commonly associated with being a contractor.

So what does this mean? What does Paxus take care of?

Paxus will take care of the following on your

behalf:

• Deductions for tax

• Deduction of your contribution

Superannuation Guarantee Contributions

(SGC)

• Provide you with your end of year Payment

Summary

• Provide weekly pay advices

• Payment of applicable allowances

• Any deductions for Government agencies (for

example HECS or HELP)

• Maintaining and adhering to legislative

obligations for example your tax, super,

recording keeping, ATO audits

• Administration of Public Liability and

Professional Indemnity Cover.

You still get all of the Paxus benefits program

including free access to tech training and books,

footy tipping, weekly pay and so on.

Why use this method?

• Cost savings - management companies will

charge you for setting up your own company

or fees for administering your company

• Simplicity - submit a timesheet and that’s it!

• Time - payment of taxes, super, administration

and so forth

• Legislative obligations and responsibilities

– there is no need to keep up-to-date with

changes to super, tax, insurances, or anything

like that, we will do it for you.

What costs are involved?

Paxus will charge you a 1.5% administration

service fee, and1% for Public Liability and

Professional Indemnity Cover (required when

working in Australia). This will be deducted from

you gross rate before super and tax is calculated.

These charges are industry standard as a PAYG

contractor in the technology sector.

Around the time of your verbal offer, just advise

your Account Manager that you would like to

contract under this engagement and come in and

sign the relevant paperwork.

PAYG (Pay-as-you-go) Contracting

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Page 6: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

Contracting Options 1

PR0FESSIONAL SERVICES

Pty Ltd Contracting is an ideal option if you prefer

the flexibility and control of running your own

company and operating it.

As a Pty Ltd company you need to:

• Register for your ABN for GST

• Be incorporated – have an ACN

• Provide and administer worker compensation

insurance

• Acquire Professional Indemnity and Public

Liability Insurance - Paxus can supply this for

you at competitive rates

• Administer your own and any company

employees’ superannuation

• Complete BAS statements as required for the

ATO

• Administer any work cover claims

• Contract under the increasing legislative

challenges associated with the Alienation of

Personal Services Income test (also known as

the 80/20 rule)

• Adhere to any legislations.

In order to set up the above requirements, you may

need to work with your accountant to set up the

company. If you don’t have your own PI/PL cover -

you can access the Paxus cover for a nominal 1%.

What costs are involved?

There are varied costs involved including your

time to self-manage contracting as a Pty Ltd.

Paxus recommends carefully consulting with your

accountant before choosing this option.

Before you start, as a Pty Ltd contractor we simply

need to verify your company. Under legislation

you will need to complete and provide us with the

following paperwork:

• A signed contract, there will be two contracts

to sign

• All relevant paperwork in the Pty Ltd Induction

Pack

• A copy of your company Workers

Compensation Certificate

• A copy of your ID as evidence of your

eligibility to work in Australia (Passport or Birth

Certificate and Photo ID)

• Company bank account details

• A copy of your ABN number and ACN copy of

company certificate

• Public Liability and Professional Indemnity

Cover

• PI & PL Insurance Certificate.

PTY LTD Contracting (Company Contracting)

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Contracting Options 1

PR0FESSIONAL SERVICES

Management companies are ideal for high earning

contractors who can afford the fee structures, and

want many of the same financial benefits of Pty Ltd

contracting, without all the associated risks and

time spent doing it yourself.

Specialist contractor management companies

provide services to independent contractors that

can perform a wide variety of tasks including:

• A company tax structure to work with

• Tax advice

• Administration support

• Workers compensation, public liability and

professional insurances.

Management companies however do not offer a

dedicated consultant or HR Manager to respond to

queries, resolve any issues and manage the day to

day needs of their contractors.

What costs are involved?

Fees vary from company to company. Generally

these costs can be up to 5-7% of your rate.

Before you start, make sure that you have

registered with a contractor management

company and the correct paperwork has been

submitted to us in order to get paid on time.

If you have any questions regarding this type of

contracting, please contact your accountant for

advice in selecting the best contracting method

for you.

Management Companies

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Page 8: Contracting Options - Paxus€¦ · accreditations - online 24x7 • Access to leading tech authors knowledge base of 10,000+ books - online 24x7. We make an effort to get to know

Contact Us

Victoria (Head Office)

Level 1, 380 Docklands Drive

DOCKLANDS VIC 3008

Ph: +61 3 8680 4200

Email: [email protected]

New South Wales

Level 19, 99 Walker Street

NORTH SYDNEY NSW 2060

Ph: +61 2 9464 5656

Email: [email protected]

Australian Capital Territory

Level 7, 14 Moore Street

CANBERRA ACT 2601

Ph: +61 2 6151 9200

Email: [email protected]

Queensland

Level 11, 100 Edward Street

BRISBANE QLD 4000

Ph: +61 7 3339 5600

Email: [email protected]

South Australia

Level 1,70 Hindmarsh Square

ADELAIDE SA 5000

Ph: +61 8 7422 0600

Email: [email protected]

Western Australia

Level 5, 2 Mill Street

PERTH WA 6000

Ph: +61 8 6151 1700

Email: [email protected] www.paxus.com.auwww.itsalary.com.au