Still IT contracting, but through an umbrella company that provides added services, including finding additional work and providing good teaming arrangements. It's like contracting but with many of the benefits of working in a consulting firm.
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- Thread starter VYBerlinaV8
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Still IT contracting, but through an umbrella company that provides added services, including finding additional work and providing good teaming arrangements. It's like contracting but with many of the benefits of working in a consulting firm.
Not trying to de-rail the thread but wouldn’t it better to contract through your own company? For tax benefits and expense write offs (car, IT gear, etc)?
I want to do contract work sooooooo bad... I can’t do the same job for longer than 6 months. Congrats on the new role!
PS. Should have got an Audi RS4
No. It doesn't pay off until you have 2 or 3 contractors on the books. If its just yourself, the fees paid to the management company work out slightly better than starting up your own one. But the even bigger advantage is that you then get "full time employee" appearing payslips as you are employed by the company (which you aren't a director of), so this is a win win for banks and they will give you big loans no problems based on this info and paperwork.
The management companies usually represent fantastic value, mine does anyway. They make their money by having lots off contractors on their books, not by ripping off each single contractor. Plus they pass the tax benefits of the holding company structure directly through like weaving magic into your pay slips. It is amazing how much extra real take home cash I noticed when I started contracting compared to being "an employee". You virtually don't pay for your mobile, home internet, laptop and leasing a modern car costs next top nothing, it all works out to be really good value once you're in that tax bracket. Management companies highly recommended. Plus you save so much time and have zero hassle.
Well, today I met the small team I will be working with initially, and they seem like a great bunch. The work seems to be fairly straightforward, and it looks like we'll have plenty of time to do it.
And I drove there in my brand new WRX, which I picked up after lunch today.
Life is good.
And I drove there in my brand new WRX, which I picked up after lunch today.
Life is good.
You do. The way most professional packages in IT seem to work is they offer you a figure which is your total package (also referred to as Total Remuneration). Out of that comes super, insurances, and whatever else (eg novated lease) and the remainder is paid to you as 'salary'.
Depending on Agency, some tell you daily rate + super (hubby role was like that) while my daily rate included super (different agency though). Ask the agency to clarify for you.
You pay the super. So if the client is offering you $800/day, Then it's $4000/wk.
Make sure you clarify in your negotiations whether the daily rate includes, or excludes a super portion. They will try and include to make it cheaper. I always got them to quote base daily + super. Never hurts to ask anyway, even though client may not go higher. If you can get them to go $800/day + super (then your daily rate effectively becomes $870/day).
Generally I work on a 45 week / year calculation to work out the equivalent permanent salary (as you do not get payed for these as a contractor).
4 weeks leave
2 week public holidays
1 week sick leave
So $4000 * 45 = $180K equivalent perm package. It's nice to look at your daily rate and multiply it my 52 weeks, but that's not going to happen. Some companies even force contractors to take a month off over Xmas/New Year.
If you go PAYG contracting, or through a management company, then they will take some off your daily rate to cover insurance, pay super, and then maybe $3-4/hr for their services.
I also liked negotiating hourly rates, rather than daily rates. Daily is good for the company, as if some overtime is required, your still on daily. On hourly, I could charge 45hrs some weeks.
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Congrats on the move
I would find it so hard to walk away from a $160k permanent Job, unless I hated it, but onwards and upwards for you, well done!!
A senior role like that would normally include phone, laptop, internet, company car & extra holidays at $0 cost or worry to the employee I would think, so I wouldnt see that as a base for venturing on your own. Ofcoarse if you earnt a lot less with no benefits thats a different story.
I would find it so hard to walk away from a $160k permanent Job, unless I hated it, but onwards and upwards for you, well done!!
A senior role like that would normally include phone, laptop, internet, company car & extra holidays at $0 cost or worry to the employee I would think, so I wouldnt see that as a base for venturing on your own. Ofcoarse if you earnt a lot less with no benefits thats a different story.
VYBerlinaV8 I would be very interested to know how you got into IT security for the Federal government. I also currently work for the Federal government but only as IT Support.
I think most opportunities are in ACT if you wanna move up broadband scale.
Nice move, you have a skill that everyone wants in the IT industry and can't do without
I think most opportunities are in ACT if you wanna move up broadband scale.
Nice move, you have a skill that everyone wants in the IT industry and can't do without
