[austechwriter] re working in other states with management companies
- From: "Erisa Linsky" <slinka@xxxxxxxxxxx>
- To: <austechwriter@xxxxxxxxxxxxx>
- Date: Sat, 2 Aug 2003 13:07:14 +1000
I have had a bit of bother recently, relocating for short term work, and
dealing with very high costs, and diabolical management companies.
1) I need to get members' recommendations about which companies are trustworthy
and give a good financial result.
2) I think we as technical communicators should be collectively lobbying the
government and obtaining tax rulings to our benefit. If anyone is good at
doing that, it ought to be us.
If contracting in Canberra it is virtually impossible to be self employed
unless you have a company, and therefore on must have PAYG deducted, as an
employee. So you sign your contract over to a management company who then put
you through a payroll tax exempt company (payroll tax is State tax; in the ACT
it is 6.85% VIC is slightly over 5%). The management company will charge you
5% percent of your income, although some are less. (Actually they may say 3%
and then actually charge you 5).
They then pay you your money, part in wages and part in reimbursements for
expenses incurred. Hence the tax is less than if you paid it on the whole
income. There are other things like workers comp, liability insurance and
medicare that may or may not be included in the 5 -3%.
You are then asked to sign contracts in a hurry that dont specify these things
and sometimes give you no protection at all. Also, interestingly enough, you
may not get the other party's signature on the documents you sign
So now, you are in a greater financial risk situation. You face the risk of
failure of not only the company you do the work for, and the recruitment agent,
but also the management company and the payroll tax exempt company.
The accommodation costs in Canberra are high, particularly since the fire.
If you get a serviced apartment for $600.00 per week you are doing pretty well.
They are usually over $110 a night. You cant easily rent a furnished flat for
less than three months, and most landlords want at least six months. Then your
phone costs are horrendous also, if you are using a serviced apartment or hotel
phone, or your mobile. If you do lease, you will have trouble getting your
bond back, as they know you are leaving town. Food is another contentious
item. What happens if you have to buy a heater, cooking equipment or spend a
few hundred bucks in petrol and phone charges in the process of finding
accommodation?
Management companies dont seem to have done their homework about associated
living away from home costs that are tax deductable, or if they have, they are
unable to explain or field questions adequately, getting it muddled, and some
become aggressive and threatening and there is no point bothering many more of
these costs would be ruled as deductable. In the future it is likely that more
Melbourne companies will force you to become an employee. Currently most of
them do not, if you are operating as a sole trader.
Anyone care to discuss this?
Erisa Linsky
0407 811 937 (03) 9855 1820
Slinka@xxxxxxxxxxx
erisalinsky@xxxxxxxxxxx
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