Kylie and Sarahs Cleaning Services

[kylieandsarah]

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Has a question regarding employing staff.
We currently have casual staff, 12.
Someone suggested becoming a booking agency for cleaners rather than a direct employer as such.
Does anyone know anything about becoming a booking agency and whether that saves on fees such as super, workers comp etc?
Tia.

[MD Clean]

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Your relationship with those that do the cleaning will determine your tax and super and workers comp status – they are technical questions best answered by your Accountant.

[alliedib]

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I have a client who did exactly what you wanted to do – she found that it became a nightmare for a number of reasons (quality of work, return on investment, even the insurance became more difficult (and expensive)). Happy to discuss the finer points with you if you want more info.

Regards,

Mark

[bb1]

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Unlike the others I am not sure if I can see an issue with TAx and workers comp, if it is purely a booking agency. And happy to have it pointed out where I am wrong.

But what I am thinking you are going to be like a motel booking site, where someone wants a cleaner, and you source the cleaner, , but the cleaner provides the service to the client, and all you do is take the booking, and take a booking fee.

Now if the cleaners are truly independent from you, and have no other relationship with you accept for you making the booking, I am not sure what the issue is. ie. If I book a motel through a motel booking agency, and the motel does something wrong, I cant really sue the booking agency, the transaction becomes a relationship between the motel and me. And Yes happy to be proven wrong.

But where I see your problem with this is cleaning like garden maintenance, accept for a small percentage of your business will be ongoing business, by this I mean fortnightly visits. And this is where the problem from my view is, you can charge a booking fee for the initial visit, but are you able to for the ongoing work, so you may only have a small pool of income. Sure I guess you can say you want 10% of all future business with that client, but than you move beyond a booking fee (I think)

Having had close association with a cleaning business for a few years, who put staff into peoples houses, she even had problems, with the cleaner and the homeowner, coming to a private arrangement where by they cut her out of the mix all together and the cleaner worked direct. And yes people will say there are avenues to stop this, but it all comes down to cost.

Hope I have explained my concern clearly. And yes like the others have said there may be other issues.

[alliedib]

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An important question: who will be invoicing the client – will it the cleaner (with them paying you a spotter / referral / booking fee) or will it be your business (who then subcontracts the work out to the various cleaners in that area)? This will give a bit more insight on the best way to proceed.

Regards,

Mark

[Author]

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