CONTRACTORS

One of the main benefits of contracting is having a choice. GPC contractors have 3 options:

1. PAYG Contractor – PAYG is ideal for you if you value simplicity and fuss-free engagement We manage all administrative tasks for you, leaving you to enjoy this seamless arrangement.

FEE: We take care of all for you and charge a small administrative fee of 2.5% of your gross income. The following tasks are taken care of for you:

• Payroll processing
• Issuing your pay slips
• Administering tax and superannuation instalments
• Coverage of Workers Compensation cover
• Coverage of Professional Indemnity and Public Liability insurance
• Paying payroll tax
• Issuing annual Group Certificate

2. Pty Ltd Company Contractor – This option is great if you enjoy being in control of running your own company and the flexibility this arrangement offers. You will be contracting through your own proprietary limited company and will need to work through these:

FEE: this option involves legal, insurance and accountings costs and time investment. We would recommend consulting your accountant prior to choosing this option.

• Engage your accountant to set up Pty Ltd company for you
• Register company for GST (in most cases, you will need your accountant’s advice)
• Purchase Workers Compensation insurance
• Purchase Professional Indemnity and Public Liability insurance (we can also provide these insurances for a small fee of 1% of your gross rate)
• Administer your own tax and superannuation instalments
• Administer quarterly BAS statements (as required)
• Prepare statutory accounts and pay for associated costs
• Contract under the increasing legislative challenges associated with the 80/20 rule

3. Contractor Management Arrangement – If you are a high earning contractor who is happy to cover the cost structures of Management companies then this option will be perfect for you. The financial benefits of this arrangement would be similar to PTY LTD Company contracting minus the associated risks and time investment.

FEE: Management companies are the specialists in providing support services to independent contractors and on average their charges are around 5% of your gross rate

• Take care of all administration and back office support for you
• Cover you for Workers Compensation, Public Liability, and Professional Indemnity insurance
• Act as your own tax expert
• Provide you with a company tax structure to work under
• Maximise your tax position