Stable Employment History
Some of you have had a chance to ‘test drive’ your recruiters payroll service. One thing that you may not have considered is how using your recruitment agency for your payroll can affect your employment history and how it may affect your chances when applying for a loan.
For example, if you are moving between roles or working with different recruiters, or are currently entering into a contract that will finalise at the end of financial year i.e 30 June 2015 then you could end up with a number of PAYG Summaries from your various employers over the past 12 months as every recruiter, if you are using their payroll service, will issue you with a different PAYG Summary for the financial year.
Employment History is very important factor when applying for any type of loan. Generally lenders are looking for a stable job history. In 10 things that can derail your mortgage application it lists a stable employment history as one of their top priorities when applying for a loan.
“Lenders like borrowers who have a relatively stable recent employment record – at least six to twelve months or more in your job, receiving regular income. If you are looking to change company at the same time you are looking to buy a property, seriously reconsider one or the other.”
One of the advantage of using Bookssorted is that you will end up with one PAYG summary and one employer for the total time you are contracting, regardless of agency and length of contract.
Given that our rate is 1.75% for our standard service, which is not so shabby as it includes:
- Salary packaging of all business expenses (laptops, ipads, mobile phones etc)
- Salary Sacrificing Superannuation
- Payment in advance
- Professional Indemnity, Public Liability and Workers Compensation Insurances
Most recruiters offered low rates i.e. 0% – 1.5% when the payroll tax exemption clause was removed on 31 December. Recruiters are now adjusting their payroll service fees to market
value i.e 2.5% or above.