3.5% is not bad... The agency i'm with charges 4.5% but they even throw in a sponsorship visa! ;-)
you can bargain with most of the agencies with regards to fees. I know i did. If there's no visa involved i would think you could probably do a tiny bit better than 3 1/2 %... but not that much better. And i'm sure that this is the rate because i get the invoices and pass them onto my employer. The one thing to think about is with an agency you cant really claim back GST. Given a choice i'd run my own company and pay an accountant rather than go thru an agency... it worked out well for me back home. But here i can only work thru the agency. Gav On Tue, 24 Aug 2004 12:21:52 +0800, Brett Payne-Rhodes <[EMAIL PROTECTED]> wrote: > 3.5%? That sounds *very* low. Do they tell you the rate they are > charging the client and actually show you the contract so you can > confirm it? I would be expecting them to charge between 10% and 20% but > maybe I've just been out of touch with agencies too long... > > B) > > > > Scott Barnes wrote: > > 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. The content, including > > attachments, is a confidential communication between Suncorp and the > > intended recipient. If you are not the intended recipient, any use, > > interference with, disclosure or copying of this e-mail, including > > attachments, is unauthorised and expressly prohibited. If you have received > > this e-mail in error please contact the sender immediately and delete the > > e-mail and any attachments from your system. > > > >>If this e-mail constitutes a commercial message of a type that you no > > > > longer wish to receive please reply to this e-mail by typing Unsubscribe in > > the subject line. > > > >> > >> > > > > > > > > --- > > 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/ > > > > -- > Brett Payne-Rhodes > Eaglehawk Computing > t: +61 (0)8 9371-0471 > f: +61 (0)8 9371-0470 > m: +61 (0)414 371 047 > e: [EMAIL PROTECTED] > w: www.ehc.net.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/ > --- 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/
