There are many companies in Canberra offering ‘payroll services’ to IT Contractors, but what is a ‘payroll services/management company’?
A payroll service company is an accounting business whose main focus is the preparation of payroll for other businesses or for IT Contractors who don’t have a business (an Australian Business Number, or ABN) but wish to reap the benefits of being a business in Canberra providing IT contractor services to the Commonwealth Government.
Competitive contracting rates
As a contract employee being submitted for a contract through a recruitment company, you still have to pay the ACT Government 6.85% as payroll tax. Actually, the recruitment company pays that for you on your behalf as they provide the payrolling. In other words, you are being paid as an employee of that recruitment company, which in reality you are not a true employee of that recruitment company – they are just acting as a ‘middle man’. But, because of this ‘middle man’ set up, the extra 6.85% payroll tax is on top of your hourly rate, so you come out more expensive to the Client. Many times you will lose out to other contractors because of this – you are too expensive for the client.
However, if you are not an employee of that recruitment company, but merely another company (vendor) that the recruitment company has to pay for services rendered, you are not an employee – there is no 6.85% payroll tax to pay! So it is a ‘win’ situation for the recruitment company (no 6.85% payroll tax charged on top of your rate, no hassles to have you as an employee with the associated obligations, etc) and a win for you, because you come out as less expensive to the Client and therefore, most importantly, you are more competitively priced for the contract role. Most times, this price difference will win you the job!
Not only, then, will using Aristech as your payroll company make you more competitively priced, you will also receive additional benefits:
Aristech also realises that you have financial responsibilities and professional goals to reach without the headache of trying to figure out how to lease a car, or how to packaged required work related resources such as laptops and training courses. Also, who has the time to deal with researching, negotiating, and filling all the paperwork for these required resources?
Since Aristech can provide you with payrolling, why not also consider saving time and money by taking advantage of these additional services offered by Aristech:
For those contractors trading through their own Pty Ltd companies, Aristech charges a flat fee.
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