Well actually Brian, this is what triggered it :) The position I'm about to take requires i have public liability & indemnity insurance and figured it may be easier to palm this off to the "contractor" agency instead of coming up with the $$ upfront. (I should of done this earlier)
At the moment, its a matter of tracing down an Insurance broker and getting them to find me the best deals etc, which is tedious at best. The one in question basically works out to take 3.5% of my contract, i'm going to shop around still and see whats available just concerned about the pitfalls of doing it solo vs teaming up with an agency. My wife works for Ernst & Young, and all of our personal friends are seniour accountants, so i've got "FREE" accountants to feed off of (I get my tax returns done for a $5 scratchie and a BBQ dinner) Scott "KNOTT, Brian" <[EMAIL PROTECTED]> wrote in message news:[EMAIL PROTECTED] > > Scott, > Just to throw something else into the mix. > > If a you are working for a contracting company and they are paying your > company then often they assume that you have your own public liability and > professional indemnity insurance. If they pay you as an employee then they > cover the insurance. Here at Suncorp we require any company we work with to > have $1,000,000 public liability and $3,000,000 professional indemnity > insurance (may be the reverse). This amounts to about $2500 a year in > insurance. > > Bottom line is check who is required to have the insurance. > > Brian > > > > -----Original Message----- > > From: Angus Johnson [SMTP:[EMAIL PROTECTED] > > Sent: Tuesday, 24 August 2004 11:30 > > To: CFAussie Mailing List > > Subject: [cfaussie] RE: OT: Contractor firms. > > > > Scott, > > > > I dealt with a few similar contract companies in the UK. The tax system > > over there is somewhat laxer than OZ though and I know the ATO don't > > like these contractor companies. (For obvious reasons). > > > > It's always a blurry line between "employment" and "contracting". Make > > sure you ask them how they avoid the ATO assessing you as an ordinary > > employee. In the UK for instance you write several clauses into your > > contracts such as your right to provide a substitute in your absence and > > the right to work for other companies (not just one). Everyone knows > > it's setup up this way to avoid employee relationships and not enforced. > > > > > > Or the other thing they like to do is incorporate you, become directors > > of your company and employ you. That way they avoid personal services > > implications ie., you providing direct labour to a client and > > withholding tax. They then pay you dividends and salary which although > > you still pay tax on can reduce your bill significantly. > > > > Down side. Commission or corporate fees can add up (maybe as a high as > > 5% of your earning). As usual they will disclaim all liability in the > > event of ATO challenging your setup. I know in the UK the government > > they had been threatening to hit contractors for these arrangements but > > I think the resulting exodus of talent overseas puts them off. > > > > Boils down to how much tax they are going to save you versus their costs > > versus risk of tax audit. > > > > (I was an accountant in another life but don't tell anyone) > > > > Cheers > > Angus > > > > PS Brett's comment about locking you in is very valid. Particularly if > > they get you to incorporate. > > > > > > > > > > > > -----Original Message----- > > From: [EMAIL PROTECTED] > > [mailto:[EMAIL PROTECTED] On Behalf Of Scott > > Barnes > > Sent: Tuesday, 24 August 2004 10:33 AM > > To: CFAussie Mailing List > > Subject: [cfaussie] OT: Contractor firms. > > > > Hi All, > > > > I'm toying with the idea of handing off my financials to a contractor > > agency > > (ie www.myitg.com). Has anyone here had experiences with such companies > > and > > can give me some advice on pros/cons of using such agencies. > > > > Regards > > Scott Barnes > > CodeMonkey For Hire. > > > > > > > > --- > > You are currently subscribed to cfaussie as: [EMAIL PROTECTED] > > To unsubscribe send a blank email to > > [EMAIL PROTECTED] > > Aussie Macromedia Developers: http://lists.daemon.com.au/ > > > > > > --- > > You are currently subscribed to cfaussie as: [EMAIL PROTECTED] > > To unsubscribe send a blank email to > > [EMAIL PROTECTED] > > Aussie Macromedia Developers: http://lists.daemon.com.au/ > > > -------------------------------------------------------------------------- --------- > This e-mail is sent by Suncorp-Metway Limited ABN 66 010 831 722 or one of its related entities ("Suncorp"). > > Suncorp may be contacted at Level 18, 36 Wickham Terrace, Brisbane or on 1800 689 762 or at suncorp.com.au. > > The content of this e-mail is the view of the sender or stated author and does not necessarily reflect the view of Suncorp. 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