PAYG or Pty Ltd?
When working for HCi you have a choice of pay arrangements:
| Pay arrangement -> | PAYG | Pty Ltd company | ABN (sole trader, family trust, etc) |
| What you need | Nothing – just fill out some forms for us | A Pty Ltd company with its own ACN (“Australian Company Number”) | An ABN (“Australian Business Number”) |
| Advantage to you | We look after all of the paperwork – you just spend the money! | You have more flexibility in tax arrangements | HCi does not engage using ABN (sole trader, family trust, etc) arrangements because of the risk that the ATO may ‘deem’ them to be PAYG; yes, we know many other agencies are prepared to do this regardless of the risks to you |
| Disadvantage to you | We take 4 weeks longer to pay you. You do your own administration for super, tax and insurances | ||
| Superannuation | We look after that – just tell us what super fund you use | You have to organise your own | |
| GST | NA | You bill us for an amount which includes GST, which you then remit to the ATO when you do your BAS return | |
| Insurance | We look after that | You will need to set up compulsory worker’s compensation insurance, and other insurances set out in your contract | |
| Payroll tax | We look after that | If HCi is your main customer, you may be liable for payroll tax |