Here are some answers to commonly asked questions. If you have any further questions, please contact us. Thank you.
Q. Who is CXC Global? A. CXC Global is a global management company that specialises in salary packaging, accounting & taxation minimisation services for employees and contractors. A management company is a sophisticated alternative to being payrolled PAYG – in most cases providing users with more cash-in-hand.
We aim to provide an improved lifestyle through increasing net remuneration along with accounting and administration services - as well as additional benefits including free tax returns and financial advice with affiliated specialist companies.
Q. Who has payroll tax liability when dealing with CXC Global? A. Payroll tax laws vary from state-to-state in Australia, but in all states and territories except the ACT, the ‘Employment Agent’ provision of the various Acts requires that the company that on-hires the contractor to the end-user client is responsible for payroll tax. Therefore, the recruitment agency remains responsible for factoring this amount into their billing arrangements and making payments to the relevant state revenue authority.
Q. When do you pay the contractor? A. CXC Global pays contractors every business day (excluding all NSW public holidays). This means that we are able to pay your contractors in-line with your payroll schedule. We pay funds to the contractor the same day that we receive them from you via overnight transfer.
Q. Who has the insurance responsibility? A. Where CXC Global takes on the management of contractors, it covers your contractors for Workers’ Compensation, Public Liability ($20 million coverage) and Professional Indemnity ($10 million coverage).
Q. Can we salary package internal staff? A. CXC Global is able to provide internal agency staff with the benefits of salary packaging including novated car leasing, Living Away From Home Allowance and packaging of work-related expenses. CXC Global is able to offer this via our payroll outsourcing model known as a Remuneration Services (RS) agreement, which allows the agency to maintain the employer/employee relationship.
Q. Who has employer liability? A. CXC Global has a number of arrangements that vary from offering administration and payroll solutions that ensure the employer liability remains with the agency (should this be required by the particular situation at hand) to the most common scenario where CXC Global takes on the full employment risk associated with engaging contractors. Once CXC Global is invoicing the agency with its ABN, doing payroll, making payment of net salary and covering Worker’s Compensation and other insurances, it provides a substantially reduced employment risk for the agency.
Q. When are invoices sent A. Invoices are sent in accordance with the agency’s pay cycle. This can be weekly, fortnightly, monthly or calendar monthly.
Q. Whose timesheets are used? A. CXC Global is happy to accept any timesheet template whether this is produced by the agency or end client. CXC Global also has a standard template which can be used.
Q. Whose contracts are used? A. CXC Global is happy to work with contracts provided by the agency (subject to approval of the exact terms), or if the agency does not have a preferred contract we are more than happy to provide our template contracts for the arrangement (with any changes the agency would suggest, subject to approval).
Q. What is the billing and pay cycle process? A. The CXC Global team has over 15 years experience working with independent contractors and one thing this has taught us is that contractors are much happier when they are able to be confident of when they will receive payment for work completed.
As a result CXC Global have a strong focus on providing contractors with a “billing and pay cycle” that will reflect their obligation to send timesheets (and all the deadlines associated), and how that will flow into invoices being raised by CXC Global (subject to agency invoicing deadlines) and payment being made by the agency. This means CXC Global can more accurately predict when a contractor will be paid, and this provides certainty.
Q. What is the sign up process of contractors with CXC Global?
A. The best thing about the CXC Global sign up process is that, while there is a number of steps that need to be followed, it can be tailored to meet with your internal processes, so as to minimise the impact on your business.
The first step is to introduce CXC Global to the contractor as early as possible in your dealings with them. CXC Global will contact the person and arrange a consultation to determine the best way we can assist them personally. Once they have agreed to use CXC Global we will be in touch with you to arrange contracts. This process can be completed in as little a few hours, but this normally depends on the urgency of the situation.
CXC Global staff will guide you through the entire process and take on as much of the workload as possible to get you back to what you and your team do best – recruit!
Q. Are you a recruitment agency? A. No. CXC Global is not a recruitment agency. CXC Global works with recruitment agencies to offer their contractors a superior contractor financial care program.
Q. Can you forward résumés onto recruitment agencies? A. Due to privacy laws, CXC Global is unable to provide our contractors’ personal details to recruitment agencies. We encourage contractors who are looking for work to liaise directly with employment and networking websites to assist them in gaining work.
Q. How does the CXC Global fee structure work? A. CXC Global has a number of fee structures depending on the arrangement that is in place. Some include some or all of the payment being covered by the recruitment agency or by the contractors themselves. In general, the CXC Global fee is a percentage of the contractor’s net salary and is paid for out of the savings we generate for either the contractor or the agency.
Q. How does CXC Global compare with its competitors? A. CXC Global is the market leading contractor management company in Australia. We believe the key to our success is our approach to high quality customer service, together with our technical knowledge and ability to find the best solution for contractors and agencies.
CXC Global is the only management company in Australia to offer a solution for all business structures including sole traders, PAYG, PAYG with salary packaging, trusts, partnerships and Pty Ltd. This combined with our focus on ensuring a legally complaint offering that is delivered with integrity and a mindset that places “win-win or no deal” for all parties as our top priority.
Q. What is CXC Global's turnaround time? A. CXC Global commonly arranges for a contractor to be signed up and have contracts in place (subject to the cooperation of the contractor) within 24 hours of the referral. Individual cases can take longer or shorter than this timing, and the more time we have the better.
Q. Does CXC Global have an incentive program? A. Yes. CXC Global offers $100 travel and gift vouchers to anyone who makes a successful referral through our online Referral Rewards Programme.
Q. How can I payroll sole traders using CXC Global? A. Many recruitment agencies do not allow engagement with sole traders due to the risk faced in engaging contractors who are not legally required to have Worker’s Compensation, as well as withholding rulings that the ATO had imposed on “on-hire” employers. CXC Global is in a position to facilitate the engagement of sole traders (and other non-incorporated structures like partnerships and trusts).
CXC Global engages directly with the recruitment agency and thus protects the agency from the risks outlined above, while still allowing contractors to utilise the structure of their choice – which would otherwise be a major issue for them in taking up the contract you are offering.
Q. How does an agency engage with CXC Global? A. CXC Global operates as the individual contractors ‘company’, if you like. The agreement is such that the agency engages with CXC Global either through a two-way agreement or a three-way agreement that includes the individual as well. The individual has an agreement with CXC Global separately that does not include the agency.
At its core, the agency is holding CXC Global to provide the services (in the person of the individual) agreed in the contract and CXC Global hold the agency to pay us for those services. It is an agreement for services, not an employment agreement.
Q. Can CXC Global assist us with sponsorship? A. CXC Global is currently unable to provide sponsorship of candidates on a 457 visa. We are, however, exploring our options in this area.
CXC Global can provide recruitment agencies and employers with assistance in obtaining a business sponsorship license via our preferred Migration Law firm
Q. Can CXC Global payroll our sponsored candidates? A. CXC Global is able to legally payroll agency-sponsored candidates and offers them the benefits of salary packaging such as Living Away From Home Allowance. CXC Global is able to offer this via our payroll outsourcing model known as a Remuneration Services (RS) agreement, which allows the agency to maintain the employer status.
Q. Does CXC Global have an online timesheeting system? A. All CXC Global contractors have access to MyCXC – our online contractor portal, which includes online timesheeting. This system can facilitate full recording and online approval of timesheets.
CXC Global is also able to brand the MyCXC portal with your agency’s colours and logo and have it accessible via your own agency website. This is one of the features of the CXC Streamline Solution.
Q. How can I make a referral to CXC Global? A. You can make a referral to CXC Global in a number of ways: a) logon to CXC Global Referral Rewards and register your referral online; b) contact a CXC Account Manager or Relationship Manager in your state; or c) contact CXC Global’s Head Office on (02) 9474 1200.
Q. How can CXC Global help reduce our admin? A. CXC Global provides one single source for paperwork. Through our innovative MyCXC online portal, we can provide a one-stop-shop for timesheets, contracts, invoices, expenses, and more.
We free you up to work on your next placement, by providing less paperwork, and better accuracy - of tax, insurance, timesheets, and more.
Q. How can CXC Global help streamline our processes? A. CXC Global can tailor a solution to suit your needs, with a choice of proven, tax-saving salary packaging and payroll outsourcing solutions. We can customise systems integration, offering on boarding, OH&S, payroll, invoicing, reconciliation and payment services.
This saves you time and admin, by managing your contractor’s expenses, payroll and timesheets.
Q. How can CXC Global assist with our attraction and retention of contractors? A. CXC Global can assist you with attraction and retention by giving you the ability to offer your contracts a value-added service which includes a superior contractor financial care program and full range of payroll structure offerings.
Q. How can CXC Global assist with protecting our margins? A. CXC Global’s salary packaging offering can assist with protecting your margins by increasing your contractor’s take home pay. You may not be able to offer your contractor a higher rate. However due to salary packaging your contractor could be maximising their net pay and taking more dollars home in comparison to standard PAYG.
CXC Global’s salary packaging offering can also result in reducing your payroll tax liability.
Q. Why is CXC Global the global leader? A. Being a global expert on payroll, administration and salary packaging is a real challenge. This is because each country has its own rules that surround tax, immigration, and employment. CXC Global has a rigorous process whereby we use our experience in other parts of the world to assess our ability to add value to our clients and contractors within the countries we consider operating.
Once we have made that decision, we model the business we develop there on the basic core fundamentals of providing a great management service – great customer service, legal structures that suit local conditions and laws, and honesty, integrity and a ‘win-win or no deal approach’ to business.
Once we are set up in a new country we can then apply the lessons we learn and the experiences we have to our clients and contractors the world over.
Q. What reporting can CXC Global provide us? A. Depending on your engagement with CXC Global, CXC Global can provide a full range of reports as specified by you. Some examples of reports are: - Contractors by: cost centre/division/consultant/referral/client
- Total contractor spend
- Contract end date reports
- Payroll tax liability
- Commission reports
Q. How does CXC Global increase our contractor’s cash-in-hand? A. CXC Global are experts in salary packaging and helping contractors choose the best payroll option for them in their circumstances.
For further information on our service to contractors please click here.
Q. How can CXC Global help reduce our on-costs? A. Contractors you on-hire who use CXC Global are not required to be covered by your Workers’ Compensation, Public Liability or Professional Indemnity policies. This will reduce the cost of these policies, and in some cases, if you outsource your entire payroll to CXC Global you could eliminate these costs entirely for your contractor base.
CXC Global will also be providing a high level of contractor care and handling all payroll queries and financial year end administration, so this will reduce your cost of resources to provide this contractor care services. The reduction in your payroll tax cost you will incur when your contractors use CXC Global, will also reduce your overheads.
Q. Does using CXC Global mean that our contractors are exempt from APSI? A. Contractors who use CXC Global’s full management service – where we offer PAYG payroll with salary packaging - are considered employees of CXC Global for tax purposes, and therefore APSI does not apply. Alternate structures that CXC Global can assist contractors in using like Pty Ltd, sole trader and trusts may still be subject to APSI considerations
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