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Overview
Individuals have 3 payment options – PAYG, Pty Ltd or through a Management Company. The decision to work through Glotel on any of these options is completely at the discretion of the individual. There are however strict mandatory requirements for the PTY option that are outlined below.
What is the best option for you?
Deciding the best employment option is normally dictated by ones personal circumstances and is generally very easy. Residents of Australia are able to use any of the above three options. For non-residents of Australia most candidates work through management companies.
(NB: Glotel does not accept Sole Traders as the responsibilities of tax and super payments are too onerous).
PAYG
PAYG stands for Pay As You Go and as indicated refers to paying required government taxes as you work. Approximately 60% of our contractors choose this route as there is no set up fees and it is the easiest form of employment. This route simply puts the contractor onto the Glotel payroll for a contract period. It does not entitle contractors to full employee rights however.
Working through Glotel's payroll means that all the relevant taxes and super are paid according to government / state law. The super is paid into a personalised fund that can be transferred at the end of the contract (at no cost) into the contractor's own Superannuation fund. For further information on Superannuation, please see section under New Starter Requirements > Superannuation.
All contractors working on a PAYG basis are covered by Glotel's insurance cover, which includes Workers Compensation, Public Liability and Professional Indemnity (all at $10 million).
PTY – Proprietary Limited Company
Generally people set up their own PTY Ltd Companies in order to take more control of the costs incurred with contracting. This form of employment is popular, as contractors are able to apply for tax benefits relating to running their own company. The responsibilities and liabilities of payment of taxes and Super lay with the Director of the PTY Ltd Company and not Glotel (this is not the case with Sole Traders where the liability remains with Glotel).
Insurance cover is also the responsibility of the PTY and the following insurances are normally the expectations of the client;
Workers Compensation - $10 million
Public Liability - $10 million
Professional Indemnity - $5 million
In some instances Glotel can cover a PTY with our own insurances. Please speak to an Account Manager on this subject.
Contractors working through a PTY Ltd Company must have an ABN.
What to watch out for
The 80/20 rule. This can potentially offset any tax benefits for a PTY.
Management Company
For further details please contact a Glotel representative. | 
