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Contracting Options
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.
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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.
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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.
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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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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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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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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