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Old 08.12.2012, 13:45
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IT Contract via Agency - Payment Part Salary, Part Invoice

Well I used the search function and could not find this but was presented with this strange proposal.

Currently I have my own GmbH and invoice agency, they pay it and I do my own payroll (well my accountants do that of me).

Generally I have come across the two methods:

* Agency, you work for them and they do the payroll.
* Own company and Invoice, you have to take care of payroll and taxes

Now I have previously turned down some contracts because that agency insist on being on their payroll.

However I have just been for an interview for a role very close to home, rate is reasonable and the agency came back with this proposal.

* First 3 months invoice, just like I do now.
* Then we would have to agree a salary so would become on their payroll for part of the money.
* The rest would be invoiced.

Now the reason stated was that some organisation "Serta" (sounds like) have a problem, something about responsibility or liability. Cannot remember the exact reasons given as the agent was using Skype and I was on the bus so difficult to make out.

Bottom line was if the role was offered we would discuss how to work this arrangement after 3 months, as it would be a 3 month rolling contract, and at the interview they said they had years of work for me

Anyone shed light on this or is it rubbish and the agency just attempting to gouge more money by charging for running the payroll?
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Old 08.12.2012, 13:56
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

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Well I used the search function and could not find this but was presented with this strange proposal.

Currently I have my own GmbH and invoice agency, they pay it and I do my own payroll (well my accountants do that of me).

Generally I have come across the two methods:

* Agency, you work for them and they do the payroll.
* Own company and Invoice, you have to take care of payroll and taxes

Now I have previously turned down some contracts because that agency insist on being on their payroll.

However I have just been for an interview for a role very close to home, rate is reasonable and the agency came back with this proposal.

* First 3 months invoice, just like I do now.
* Then we would have to agree a salary so would become on their payroll for part of the money.
* The rest would be invoiced.

Now the reason stated was that some organisation "Serta" (sounds like) have a problem, something about responsibility or liability. Cannot remember the exact reasons given as the agent was using Skype and I was on the bus so difficult to make out.

Bottom line was if the role was offered we would discuss how to work this arrangement after 3 months, as it would be a 3 month rolling contract, and at the interview they said they had years of work for me

Anyone shed light on this or is it rubbish and the agency just attempting to gouge more money by charging for running the payroll?
Sounds like the agency does not understand Swiss law? If you have your own GMBH & it is the GMBH that invoices the agency then there is no issue. Your GmbH Looks after your own social insurance, tax etc.?
Different situation if you are a sole Trader.
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Old 08.12.2012, 15:03
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

It's years ago since I did this stuff and perhaps things have changed... but does your company have a "body shopping" certificate from the AHV bods? If not, then I can understand them wanting to get you on some kind of payroll, because otherwise it leaves them exposed for the AHV amounts, if you fail to pay up.
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Old 08.12.2012, 15:37
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

I have a GmbH. I was forced to go through an agency (Hays) by a former direct client for this "body shopping certificate" reason. The agency has the license, so there isn't an issue. (At least the BL and BS). I went through Modis for a contract in VD, and there was no issue either.

I would ask the agency for the explanation again, in writing. I'd bet they simply haven't got a grasp of the actual legal position. I remember discussing a contract with Ajilon, and the agent there couldn't get beyond "...contractor... must... be... on... our.... payroll...".
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Old 08.12.2012, 16:16
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

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Sounds like the agency does not understand Swiss law? If you have your own GMBH & it is the GMBH that invoices the agency then there is no issue. Your GmbH Looks after your own social insurance, tax etc.?
Different situation if you are a sole Trader.
Indeed, I pay a whole bunch of insurance including liability, professional indemnity etc, etc.

I have faced this with K2 on several occasions and they refused to explain so told them to stop bothering me then.
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Old 08.12.2012, 16:17
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

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It's years ago since I did this stuff and perhaps things have changed... but does your company have a "body shopping" certificate from the AHV bods? If not, then I can understand them wanting to get you on some kind of payroll, because otherwise it leaves them exposed for the AHV amounts, if you fail to pay up.
My Company pay the AHV and all that other loads of insurance, required by law. So it is all above board.
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Old 08.12.2012, 16:19
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

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I would ask the agency for the explanation again, in writing. I'd bet they simply haven't got a grasp of the actual legal position. I remember discussing a contract with Ajilon, and the agent there couldn't get beyond "...contractor... must... be... on... our.... payroll...".
I will do that, great piece of advice, I am not afraid to spend the money to get legal clarification. I did this once before on another legal point with my current agency and that killed that problem dead, cost me 800 CHF for the advice but well worth it.

Honestly the part payroll, part invoice seems to sound more risky legally than either one or the other.
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Old 16.12.2012, 13:10
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Re: IT Contract via Agency - Payment Part Salary, Part Invoice

Thought I would post some feedback on this one as I have been offered the contract

Looking at the contract they pay me gross, I have to undertake all the payroll, pay taxes, have liability insurance, pretty much the normal. However they do have a section that they can audit that you are in fact paying the taxes etc.

I just sent them a copy of my accountants bill which details doing the work for salary, payroll, VAT, completing the returns, book keeping, annual returns etc. That should I hope be enough to satisfy their nervousness, there seems to be concern they end up liable with some of the bills.

The contract is 3 months but rolling and there is 3 years worth of work in the pipeline. Apparently I was way ahead of the other 7 people they interviewed (do they really interview this many for a contract role now?). But the best news it is 20 minutes on the bus from where I live so Mrs. Magic will have to fight me for her half of the duvet each night

No more getting up at stupid O'Clock on a Monday morning to catch a flight just after 6 am.

The agent wants to meet up with me at some point so I will ask try and get more detailed account of why this area of invoice/payroll has become such a concern for them.

Lucky for me any extensions are based on the first contract, so I am going to stick with that, after all get in with the client and it becomes a hard to move position on their part.

Working back close to home, cannot believe it, this is going to be great for my family and me.
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