IT Contractor Payroll Services | Prosperity Payrolls | Australia

The Importance Of Payroll Management For Contractors

Individuals and businesses can benefit hugely from contractor payroll management, as it alleviates some of the pressure that contractors may feel. We discuss the importance of outsourcing payroll management for contractors, and why they can trust Prosperity Payrolls to best manage their payroll processing obligations. 

Contractor payroll management vs Employee Payroll Management

There are different variables that determine whether you are an employee or contractor. In general, independent contractors work for themselves and are their own boss, whereas employees work in someone else’s business – the employer controls how, where, and when they do their work, and pays their wage.

It’s important to be fully aware of these differences to ensure your payroll service for contractors is correct. If you’re an employer it’s important to note these things, so that you are correctly paying contractors and employees, abiding by the specific regulations.

When paying a contractor, certain exemptions and deductions may apply that will reduce the amount of tax you have to pay. In most cases a contractor:

  • Is paid for results achieved.  
  • Provides all or most of the necessary materials and equipment to complete the work.  
  • Is free to delegate work to other entities.  
  • Has freedom in the way the work is done.  
  • Provides services to the general public and other businesses.
  • Is free to accept or refuse work.
  • Is in a position to make a profit or loss.  

How can Prosperity Payrolls benefit you as a contractor?

When it comes to contractor payroll services, Prosperity Payrolls offers many benefits. Our team understands that as an individual contractor, you earn a great income but miss out on added benefits which come from belonging to a company.

Our team of experts are experienced and knowledgeable in contractor payroll solutions.

You have some significant business expenses which you wouldn’t have if you were an employee. For instance:  

  • Running an office in your home  
  • Care and travel expenses 
  • Internet costs 
  • Computers and software 
  • Phone costs  

Prosperity Payrolls will reimburse you for these each month, thus reducing your taxable income.

Within 24 hours of receiving funds from your agent each month, Prosperity Payrolls will deduct your superannuation and tax obligations and deposit the balance, including your tax-free expense amounts, to your nominated bank account. Your superannuation deductions and tax payments are then paid to the appropriate authorities.

Something you must have is Professional Indemnity and Public Liability insurance cover. For an individual contractor these can be expensive items, but as your employer, Prosperity Payrolls will cover you at no additional cost.

If required, Prosperity Payrolls can arrange a novated motor vehicle lease or a comprehensive motor vehicle usage package for you. Additionally, we can arrange a superannuation account for you if you don’t already have one.

In regards to payments, while they are normally made monthly, they can be made weekly or fortnightly by special arrangement if your agent works on these shorter timescales.

PLUS, when you join Prosperity Payrolls you become a valued member of our team. You can always call upon us for individual, personal and helpful advice to assist you achieve your goals.

Importance of picking the right company for your IT contractor payroll services.

IT contractor payroll solutions are important for every type of industry, and they require solutions that are simple, and secure. Contractor payroll management can relieve the burden of managing transactions, personal data and staff wages.

With a considerable amount of personal experience as an ICT contractor, contractors can have peace of mind that Mr Cummins knows the ins and outs of contract and payroll processing work. Prosperity Payrolls is unique for being a contractor payroll company, and prides itself on the experience, knowledge and personal approach we have behind us.

Mr Cummins’ understanding of the contracting industry and his ethical, caring approach to business, is ideally placed to make Prosperity Payrolls a great support operation for modern ICT contractors, particularly those operating in the public sector. Naturally, offering services in payroll for contractors was the next step, with his extensive background in the field. Independent contractors’ payroll is a crucial step within business, and should be managed efficiently and clearly.

For those looking into a contractor payroll in Australia, look no further because Prosperity Payrolls provides only the best quality service when it comes to managing a payroll system.

For A Quality Payroll Service That Comes With Financial Benefits, Contact Prosperity Payroll Today.

At Prosperity Payrolls we help you maximise your earnings, honestly, securely, fairly and at minimum cost. As an individual contractor, you earn a great income but may miss out on many of the added benefits which come from belonging to a company. That’s why we prioritise our clients getting the most they can out of their pay, while taking into account tax obligations and superannuation. If you’re after a payroll processing company you can trust, contact our friendly team today. 

For A Quality Payroll Service That Comes With Financial Benefits, Contact Prosperity Payroll Today.