The risks of incorrectly engaging workers as contractors who are later found to be employees.

1. Are your Independent Contractors
really Employees...???
How often do you complain that you can place some, or all, of your current So, what is Agency Contracting?
are swamped in paperwork? How workforce on the system. Most
importantly you are the client - the Through Agency Contracting you can
much of your time is currently system responds to your needs. legitimately engage independent
concerned with the administration of contractors, outside the jurisdiction of the
independent contractors? Are these Industrial Relations System. This system
has been tested in the High Court of
persons truly independent, or are you
Australia. The process is simple and
“housing” employees? In actual fact, cost effective.
if these contractors are employees, you
will face detrimental effects on your People can enter work contracts freely and
for defined periods. It is simply a matter of
business in terms of accruing persons with the required skills needed by
superannuation, workers' your business register with the Agency as
compensation, payroll tax and workers' independent contractors. These contractors
entitlements just to name a few. then perform required tasks to your
satisfaction, you pay the agency a pre-
H
arranged contracted price, and then the
aving a direct relationship with your
Agency pays the contractors, plus pays and
independent contractors can be
administers all statutory and legal
damaging.
requirements.
So, how do you break the relationship with
existing employees and contractors? There Contracting Solutions provides Agency
This is also a cost effective solution for
is one truly effective way of managing the Contracting services - they are not an
your business. On-costs associated with
process - and that is through Agency employment agency - they simply offer a
people working under an award amount to
Contracting. This process enables you to service where all your existing and future
around a further 56 cents per dollar spent.
legitimately engage independent contractors are placed on their books -
For the same hourly cost, you can use a
contractors, outside the jurisdiction of the rather than yours - freeing up your time to
'Licensed Agency', and also have the
Industrial Relations system. This means get back to your real business.
benefit of deciding when and for how long
you can contract people with the required
to use the contractors' skills, check work is
skills, through an Agency, as independent “Our system is attached to a clause in the
completed on time - and to your
contractors. These contractors perform taxation act that removes the
satisfaction, and the Agency fully
required tasks to your satisfaction, you pay requirement for our Independent
administers the needs and obligations of
the Agency a pre-arranged contracted price, Contractors to be registered for GST or
the contractors.
and the agency pays the contractors. The operate an ABN regardless of their
Agency also takes care of all statutory and earnings…....No more BAS Statements!!”
Flexibility is the key to Agency Contracting
legal requirements including tax, workers'
- You can keep a particular contractor for as
compensation, payroll tax, public liability Many jurisdictions (State and Federal) have long or short a time as you like. If you
and other required insurances along with a vested interest to classify your decide a contractor's services are no longer
superannuation, where applicable. Independent Contractors as employees. required, you simply inform the Agency,
These reasons are purely based on a and they close the contract. No need to
The advantages of using agency contracting financial gain that is at your expense. The worry about an unfair dismissal claim.
are quite enormous, regardless of the size or State Revenue Department (Payroll Tax),
scope of your business. Based on a high Workcover (Workers Compensation
court ruling, your existing personnel, or Agency Contracting can reflect the needs
Premiums), Unions (Memberships/Workers of your changing business - by altering
workers acquired through agency Entitlements), ATO (PAYG Tax),
contracting are not deemed to be employees contracts as your needs change.
Superannuation (9%) to name a few.
of your business, are not subject to award Flexibility is the key to this arrangement.
Generally speaking, if you have a direct
conditions, and besides OHS responsibilities relationship with Independent Contractors
have no contractual connection whatsoever and their payments are based principally To find out more about Agency
to your business. for their labour generally speaking they are Contracting and the benefits available for
employees and the above applies along your business, contact Contracting
This means you are in control. Your with PENALTIES and INTEREST..!!
contracts can be arranged on a daily
Solutions on 1300 85 7722.
basis. Any service you want can be Our model overcomes these issues and
delivered, you can alter your contract creates clarity in the workplace. Frank Konstek
specifications to improve services, you Contracting Solutions