IT contracting can be a great option, if you enjoy working on projects, like independence, and are after an attractive hourly/daily rate.
So what is contracting and what are the benefits?
Many organisations choose to contract IT staff for particular projects, as they often only need a specific skill set or extra assistance for the duration of a particular project. Therefore, when you are an IT contractor, you work to contract terms, and/or to a set period of time. There are several key differences between contracting and going permanent, and a number of benefits you will receive as a contractor. These include:
Variety – the opportunity to work on diverse projects and with an assortment of employers, cultures, industries and technologies
Attractive hourly/daily rates – normally higher than permanent work (sometimes up to 40% higher)
Flexibility
Lifestyle
Independence – you can be your own boss
Networking – by moving companies and or departments you will meet new people and work in different environments.
What do I have to do to become an IT contractor?
As a contractor, you are essentially running your own company. You will need to comply with government regulations, and:
Complete your own tax statements
Have your own insurance
Make your own super contributions.
If you want to contract but don't want the hassle of submitting tax, super payments, buying insurance or keeping on top of workplace reforms – we can help. For just 2.5% of your hourly or daily rate, as a PAYG contractor, we will look after everything on your behalf. We will give you weekly pay, organise your timesheets, complete your super requirements etc - just as if you were a permanent employee. 1% of the 2.5% fee is for Professional Indemnity and Public Liability insurance (known as PI/PL) that is mandatory in Australia, so effectively you are only paying a fee of 1.5%. We also charge this pre-tax, therefore your tax rate can become lower. You also have the option of choosing a 3rd party management company to take care of everything for you, however, normally their fees are approximately 7% of your hourly or daily rate.
What happens once the contract is over?
People love contracting as it is highly flexible. If you want a break or a holiday after your contract ends, then you can do so between projects. You can also join another project straight away – if this is your preferred option, we can help find you the right project to move on to.
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