Evaluating and selecting umbrella and management companies
Friday, 8 October 2004
Have you ever considered using an umbrella company? We suggest keeping some of these things in mind:
There should be no:
- company start up cost
- annual company fees
- illegal or dubious transactions
All statutory requirements should be met:
- Company Registration Returns
- GST/VAT & Tax returns
- Tax File No. Registration
- Payroll Tax Registration
- Fringe Benefits Tax Registration
- Withholding Tax Registration
- GST/VAT Registration
- LAFHA Declaration
- Quarterly BAS/Tax Statements
All administration should be done:
- Invoicing
- Collection
- Banking + costs of
- Distribution of funds
- Tax paid
- Salary paid (multiple accounts)
- Superannuation/Pension and Medical cover paid
There should be an increase in net income:
- Salary Packaging
- LAFHA interstate and O’seas
- Company Reimbursement of Bus Exp (Education, Laptops, Airfares)
- Novated Leases
- Finance for non-residents
- Administration
- Fleet Card
Insurances should be covered :
- Workers Compensation
- Public Liability
- Professional Indemnity if required
Superannuation/Pension available:
- Your existing fund? Transportable?
- Check their fund
- Flexible investments
- Life insurance without medical examination
- Income Protection
Computer Society membership available? Provides:
- Professional status
- Skills assessing (for residency)
- Discounted education & training
- Discounted insurance
- Networking
Membership Benefits Program available:
- Discounted Accommodation
- 2 for 1 meal deals
- Tourist attractions
Free Guidance:
- Accounting matters (accountants in every state)
- Finance and investment through authorised advisors
- Contracts Checked against industry standard
Visa Processing & Sponsorship:
- Seamless transfers overseas
One Employer, many contracts:
- Bank reference letters
- Real Estate & Medical Insurance referrals
Check that the company belongs to a relevant association:
- contract professionals association
- IT recruiters association
- accounting bodies ie chartered accountant
Dave Thomas is Managing Director of contractor services company Consultants Exchange.
Dave Thomas
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LAFHA (Living Away From Home Allowance)Be very careful when it comes to the LAFHA (Living Away From Home Allowance). Regardless of what umbrella companies may believe, my advice is that it is over used in the IT market, and a target for ATO attention. Karl Wridgway Karl Wridgway, 10/20/2004 04:50:51 AM
LAFHA (Living Away From Home Allowance)It sure is a target for ATO attention. They are working on a draft public ruling, last slated as due for release on 26 November 2004 (release has been delayed repeatedly) Simon Mitchell Achieve, Corp. Simon Mitchell, 11/19/2004 05:00:10 PM
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