New to this so my question is simple.

Which Contract Companies to stay away from and whom to do business with?

 

I've posted this here before:

I've worked for PARC. It was a contract that they took over from a now defunct agency in the States. They came in and underbid the original company after our first year was up. It resulted in a pay cut for us so we weren't too pleased, but they did add one benefit that we didn't have so it worked out okay. When the contract came into jeopardy due to the Asian Economic Crisis they were of no help. The contract was terminated short of completion and we were all left jobless. Fortunately that was the late 90s and it was easy to find another job. Since then I did some ferry work for them in late 2002, just a short one week deal to move a couple of MD-80s from Arizona to Florida. Their paychecks come on time to a place of your choosing which is about as good as you can hope for with agencies.

If you are a U.S. citizen then it is to your advantage to choose an overseas agency. They are not required to file a form 1099 and they will deposit your salary to any financial institution of your chosing worldwide. That makes it your job to report income to Uncle Sam. Having the 1099 presents some difficulties as we found out in the mid 90s when working in Taiwan. The IRS wanted us to pay self employment tax, which is clearly not required, but it took our accountant some time to get them to agree to. Better to not have the 1099 in the first place.

For those contemplating any particular agency there is usually some good info on Pprune regards the likes of IAC, Rishworth, etc. The postings don't seem too enamored by IAC and their South Pacific legal set-up. They've set the contract up through an affiliate in some tiny little island nation where you have no legal recourse.

And another one:


When looking at overseas contracts there are some very important considerations to look for that you ordinarily might gloss over, but could make a big difference in your compensation. These, in no particular order, are payment of foreign income taxes, housing allowance, school fee payments, per diems, medical insurance, vacation, air fare to and from assignment, and an assortment of others small ones.

The big one is payment of foregn income tax. If you are working in a country with a 15 or 20 percent tax rate then that is a lot of money. It is very important to nail that down before commiting to a contract. Housing allowance is the next big one. In some cities it costs upwards of $3000 per month for a decent flat, that can take a big chunk out of your earnings. School fees for children would not normally be provided on shorter term contracts, but it is something to look at if you are going to relocate the family. Per diem can be a biggy. Whether it is a daily rate for time in the host country or overnight allowances it needs to be figured into the compensation package. My first overseas contract had a monthly per diem of $1800. Medical insurance obviously very important as you'll possibly be leaving behind a job with insurance in the States and need some coverage.

Always run the numbers and look at the bottom line, what you can put in your pocket at the end of the month. There can be a huge difference between two different contracts offering $12,000 per month. In one you may be putting the whole amount into your pocket and in another you could only be putting one quarter in your pocket.


Typhoonpilot

 

HACS is a good company if you have the right to work in the U.S. CReW (Crew Resource Worldwide) is the alter-ego of HACS and works if you don't qualify for HACS.

 

Thanks for the info.

 

I've flown several short trips for PARC. (Contracted day rates). The pay was okay, but a bit below what others might pay, however I was able to negotiate higher day rates in lieu of other benefits (car/hotel/airfare/per diem).

Got hung up once commuting back home after a trip (on a positive space ticket) and ended up spending the night unexpectedly. They picked up the cost no questions asked and paid an additional day, which I thought was pretty good.

 

I tried to contact "Barbara" at DirectPersonnel (DPI) in Ireland. I was told she was great in getting back to you for answers to questions (which I had).

Two weeks later, I have still not heard back from her at all. Guess the search goes on for a reputable contract company.... if one really exists

K

 

Having done the "hired gun" bit years ago, sometimes the agency was getting payment problems from the client airline. Back in 98, I was asked to stand down by the agency, when the airline had failed to make payment for some other crewmembers. My contract had been paid in full, but the others had not been. You have the possibility of being in the middle of the ****ing contest!

I echo the previous reports about compensation considerations. The tax man taketh away!