PAYG or Pty Ltd?

PAYG

• What you need: Nothing – just fill out some forms for us
• Advantage to you: We look after all of the paperwork – you just spend the money!
• Disadvantage to you: None
• Superannuation: We look after that – just tell us what super fund you use.
• GST: NA
• Insurance: We look after that.
• Payroll tax: We look after that.

Pty Ltd company

• What you need: A Pty Ltd company with its own ACN (“Australian Company Number”).
• Advantage to you: You have more flexibility in tax arrangements.
• Disadvantage to you: We take up to 4 weeks longer to pay you.  You do your own administration for super, tax and insurances.  Normally you also pay an accountant to do your returns at the end of the year.
• Superannuation: You have to organise your own.
• GST: You bill us for an amount which includes GST, which you then remit to the ATO when you do your BAS return.
• Insurance: You will need to set up compulsory worker’s compensation insurance, and other insurances set out in your contract.
• Payroll tax: If HCi is your main customer, you may be liable for payroll tax.

ABN (sole trader, family trust, etc)

• What you need: An ABN (“Australian Business Number”).
• 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.  If you’re worried about the risks of operating under an ABN for another client, see our payrolling services page.