But you claim the 30% back as franking credits, so no issue. Regards,
Greg Dr Greg Low SQL Down Under Pty Ltd Mobile: +61419201410 Office: 1300775775 ________________________________ From: [email protected] on behalf of DotNet Dude <[email protected]> Sent: Sunday, June 23, 2019 1:24 pm To: ozDotNet Subject: Re: [OT] Contracting advice for payroll Companies also pay 30% tax so keep that in mind. Set up costs are around $2500+gst if I recall correctly and you get an ABN and ACN. Several agents in Melbourne only deal with companies from our experience. Sole traders don’t have to pay super which can be a good or bad thing. On Sun, 23 Jun 2019 at 13:13, Greg Low <[email protected]<mailto:[email protected]>> wrote: I’ve always had a company and have to say I can’t imagine not doing so, but YMMV. I think it’s the most flexible by far. Mind you, I don’t look for long term gigs, otherwise the 80% rule, etc. around personal services starts to be an issue. As soon as you want other employees, etc, I would only use a company. 10M for both prof and prod liability isn’t too expensive. So many of our customers want it so it’s a no brainer. Someone recommended BizCover a long time back, we’ve used them, and they’ve been ok to deal with so far. Gets cheaper the longer you have it without any claims. Regards, Greg Dr Greg Low SQL Down Under Pty Ltd Mobile: +61419201410 Office: 1300775775 ________________________________ From: [email protected]<mailto:[email protected]> on behalf of Stephen Price <[email protected]<mailto:[email protected]>> Sent: Sunday, June 23, 2019 12:32 pm To: ozDotNet Subject: Re: [OT] Contracting advice for payroll I might also add, that the easiest option is to just go with the PAYG option. You pay tax as you go, so don't have to pay the ATO at some later date (and realise you didn't keep any aside...) and there is also GST you would have to collect and submit either annually or quarterly (but if the amount is under a certain amount per year then you don't have to collect GST)... forget what that amount is currently. I'm registered currently (for side gigs) but the amount is less than their threshold... if its under, its up to you if you do collect it or not but if its over it, then you have to. Its less to think about if you go PAYG with your first contract. Oh, as a sole trader you get an ABN (also as a company) which is the main requirement. I think if you go the PAYG route then all of the tax stuff is done as yourself using your tax file number. Get a good accountant, it's worth it. Might spend extra money on the accountant, but they know the stuff you can claim etc and you end up saving way more in taxes, plus they keep up to date on the regular rule changes... crazy not to, unless you like giving your money away. if so, I'll send you my bank account details... hehe ________________________________ From: [email protected]<mailto:[email protected]> <[email protected]<mailto:[email protected]>> on behalf of Tom P <[email protected]<mailto:[email protected]>> Sent: Sunday, 23 June 2019 8:28 AM To: ozDotNet Subject: [OT] Contracting advice for payroll Hi folks This is the first time I will be in a contracting role. I've done some digging around payroll options but wanted to check with any contractors here about their experiences and recommendations. There seems to be three options: (1) PAYG where the recruitment agent does it all, (2) set up my own company, or (3) use a management company. Any advice from the contracting pros? Thanks Tom
