atw: Re: Agency rates
- From: "Naomi Kramer" <nkr@xxxxxxxxx>
- To: austechwriter@xxxxxxxxxxxxx
- Date: Wed, 03 Nov 2004 10:05:06 +1000
> As for an agency only taking a $10 per hour margin, they won't stay in
> business. Regardless of whether you quote an ABN, the agency still
> pays payroll tax of around 6%, then if you don't quote an ABN you are
> looking at 9% for super.
This, I suppose, depends on the contractor's rate of pay. If the
contractor is getting $40/hr, $10 is 25% of that rate, which more than
covers payroll tax and superannuation. If the contractor's rate is
$100/hr, then I can see your point.
> If you find the whole thing so objectionable, why don't you try
> running an office and find your own work?
Goodness no - I prefer to simply terrorise the agencies into doing what
I want. Much easier, and somewhat fun. :)
It is an interesting difference of viewpoints - your perspective is that
the agency pays the contractor to do a job, whereas ours tends to be
that either the client pays the contractor via the agency, or that the
contractor pays the agency for finding them the job. They may all
seem the same thing, but they can be worlds apart when the word
'ethics' comes into play.
Hmmm... here's an interesting agency ethics example. A friend of
mine got a job through me and found an agency to administer the
contract. The employer (rather stupidly IMO) signed the standard
agreement form, which stated that they would not hire this employee
within (x) months without paying the agency a fee. When the
contractor was (years later) taken from agency to be hired directly by
the company, the agency demanded their fee. Now remember, the
contractor had introduced the agency to the client in the first place.
The employer finished up paying the fee.
(My opinion is that the contractor and employer were pretty dumb to let
them get the original contract through... grrr... there would've been red
lines everywhere if that'd been my employment contract!)
- Naomi
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