In my role as a specialist tech recruitment consultant in Canberra, I talk to many candidates throughout the week who are exploring their employment options, understanding what the right move is for them and their career. With this comes a constant battle of contract vs permanent tech roles. Following trends and changes in the tech market of late, I have found myself having more detailed conversations about what it means to contract – different to consulting – including how to become a contractor, how it works specifically for the individual and how it differs from a permanent opportunity. Stepping into the contracting market can be a daunting experience, there are so many questions to ask – how do you ensure you are being looked after? How do you make the most of your tech contract role to elevate your career? The biggest question I find I’m answering is “how do I get paid?”. The answer is that there are many options available when it comes to how you get paid as a contractor, depending on your needs and preferences.

At Emanate Technology we offer three ways to set up your contracting engagement which will impact how you receive your pay. Each option has its own benefits and considerations, so you’ll need to consider your personal circumstances and preferences, and it is essential that you seek financial advice when choosing the best method for you.

PAYG (Pay As You Go)

As a PAYG contractor you essentially become a casual employee of Emanate Technology. A simple and straightforward option, this is ideal if you prefer a hassle-free arrangement where you get paid your contracting fee and all the administrative and compliance tasks are managed for you including:

• Superannuation
• PI/PL Insurance
• Workers Compensation Insurance
• PAYG Tax

PAYG contracting has the additional benefit of salary packaging options you may take up, such as voluntary superannuation contributions, computer software, income protection and professional development expenses. And while we don’t charge you for the above administrative services, we do offer novated leases for vehicles for a small admin fee.

PTY Through a Payroll Company

As a PTY contractor through a payroll company, you are engaged by a third-party payroll company for your contract. This option is suitable if you want to maintain the benefits of being an independent contractor while outsourcing administrative tasks. For a fee, typically around 2-3% of your earnings, the payroll company will manage your superannuation, tax payments, and other payroll-related tasks to ensure you are compliant with all relevant regulations. By setting up this engagement, there may be tax advantages however as everyone’s tax situation is different, we recommend seeking advice from a qualified accountant.

Independent Contractor Through your Own Pty Ltd Company

For those who prefer complete control, you can operate under your own Australian Company Number (ACN). This option is best for contractors who are comfortable with managing their own finances and want the maximum control over their business affairs.

Payment would be made direct to your Pty Ltd company via Recipient Created Tax Invoices (RCTI) and your company would receive a remittance advice after each payment had been made. You would then be responsible for managing your own superannuation, PI/PL insurances, workers compensation insurance, tax payments, and other business-related tasks. There are also additional fees associated with setting up and maintaining a Pty Ltd company. We strongly recommended consulting with a financial advisor or accountant who specialises in this area to ensure compliance and so you can optimise your financial management.

Selecting the Right Agency to Contract Through

In addition to payment questions, we also get asked about how to select the right agency to ensure a successful contracting career. How do you know you are being looked after, are you working with the right agency for your skillset and how will they find me roles I’m interested in?!

Finding the right tech recruitment consultant – and agency – is very important in your job search process. You want to ensure that the consultant/s you are working with have:

• Your best interest in mind
• Are connected and engaging with relevant hiring teams related to your skillset
• Understand your skill background and where you want to take your career.

Contracting can be a big change for people, so the support from your consultant and the agency is essential to ensure a smooth process and enjoy the change.

Keeping your Skills Updated and Relevant

When you’re employed by a company in a permanent role, there are often opportunities for upskilling, either on the job, by internal learning and development teams or by external training providers. These can be part of your salary package with the company paying for both the actual training and your time to participate in the program. As a contractor, upskilling becomes your own responsibility. You will need to invest both your time and money to ensure your skills stay up to date and relevant to keep you competitive in the tech contract market.

Some recruitment agencies such as ours offer contracting benefits that include discounts to training platforms. You want to ensure the training platform offers relevant tech courses that align with your career goals. At Emanate Technology we have partnered with Lumify Work who are accredited by leading tech vendors, partners and industry bodies to provide world-class training and certifications delivered both virtually and in the classroom across Australia.

Ultimately the decision with how you set up your contract sits with you and comes down to your personal circumstances and how you want to manage the administrative and compliance requirements linked to being employed. And don’t forget to discuss this employment change with your partner too. While there are many benefits to contracting, it’s not permanent ongoing employment which may impact your household when you’re between contracts or for things like home loan applications.

If you’re looking to make the change into the contracting market, want to discuss your options or are looking for your next tech role reach out to us for a chat. We have offices in Adelaide, Brisbane, Canberra and Melbourne and are well connected in the tech market!