Some recruitment agencies offer their contractors a payroll service and we are sometimes asked “why should I use you for my payroll instead of my recruiters?”
This can often be confusing as it can seem like we’re both offering payroll and you could be forgiven for thinking “what’s the difference”?
In an attempt to make the differences clear we have put together a list of questions with answers to allow you to make up your own mind about which service is right for you.
|How much does it cost?||Recruitment agencies can vary a lot. Charges can range from 1.75% to 3.5% and up||We charge 1.75%. This covers all services including Living Away From Home Allowance (LAFHA), Novated Leases and all other services. Try our calculator to see exactly what you will pay for our service.|
|What do I get?||Basic payroll similar to that of a fulltime employee not a contractor.||You get a service tailored to claiming the benefits and advantage of being a contractor.|
|Am I able to Salary Sacrifice my expenses?||No||Yes. We will salary sacrifice your business related expenses in the same pay cycle as your purchase significantly reducing the amount of tax you pay.|
|Can I have a different pay cycle?||No. You are generally confined to using the pay cycle the recruitment agency uses||Yes. You can tailor your paycycle to suit your needs.|
|What if there is an error in my pay?||The payroll department usually does not reside in the same place as our agent or agency and will often be in a different city. This means that you will need to contact your agent and your agent will then need to contact their payroll department to pass on your query. This process can often be time consuming and leave you waiting and potentially out of money. If it is corrected it may end up being corrected in their next payrun which may not be run that day or next or next.||The person answering the phone will know you, your situation and your pay details. If there is an error in your pay we will correct it immediately and pay you that same day. This happens whether we have received payment from the recruiter or not.|
|If I am eligible for LAFHA can you help me?||No. This can be a difficult area to understand and dangerous to get wrong. The liability is left with you, the employee, if the ATO deems any mistakes have been made.||Yes. We have been processing Living Away From Home Allowance for many years. We stay up to date on all the laws around this sometimes tricky area to make sure that you get your full entitlement and also stay completely within tax laws. This is an area you do not want to get wrong.|