Why do I need a payroll company?

October 1, 2020

You have just landed a role through a recruitment company and they asked you if you would like to be paid through them or use a payroll company?

Well, here are six great reasons to use a payroll company:

1. Financial Management: Having the same company paying you throughout your contracting life provides you with the stability financial institutions need when assessing you for a home, car loan or credit cards.
Receive a single payment summary (income statement) from the one company each year, instead of multiple income statements from all different recruitment companies.

2. Guaranteed payday: This may sound like a simple thing; however, recruitment companies have strict cut off times for timesheets and if missed can delay your payment. You can also have recruitment companies that wait up to 60 days to be paid by the client before they pay you.
Your payroll cycle can often be monthly or fortnightly when you have been used to a weekly pay. With some payroll companies you can choose the payment cycle you want to be paid on.

3. Salary Packaging: Not only can you salary package all your work related expenses but you can claim the reimbursement of GST on your portable electronic devices, like a mobile phone and laptop, if they are used primarily for work purposes. You can access salary sacrificing into super novated leasing and living away from home allowance at no extra cost.

4. Convenance: No need to set up your own Pty Ltd company, you can have all your insurances covered by the payroll company and no need to worry about all the ATO compliance requirements.

5. Additional Benefits: With the buying power of a reputable payroll company you can save on your purchases of laptops, mobile phone, gym memberships, home loans and airline lounge memberships. Some will even do your basic tax return for free.

6. Flexibility: Payroll companies will allow you to put hours aside from your timesheet to pay yourself when you are in between contracts or when taking leave. They help you take control of your pay.

If you want to know more about how a payroll company can help your specific situation then call our friendly team who are happy to step you through the process, or you can use our easy to use online join form.