IT Contracting FAQ’s for contractors
What is an IT contractor?
IT Contractors are self-employed; therefore they are responsible for paying their own tax, GST and ACC levies.
Tax and GST
IT Contractors are paid an agreed rate whether it be monthly, weekly, daily or hourly. Out of this payment they must pay tax. To find out what this will be and how to pay, please refer to the Inland Revenue website www.ird.govt.nz
GST
IT Contractors can be paid their agreed rate plus GST. If you expect your turnover to be over $60,000 in a 12 month period, you will need to register for GST. You can choose to register for GST even if your annual turnover it less than $60,000, this is called voluntary registration. For more information, please refer to the Inland Revenue website under registering for GST www.ird.govt.nz/gst/
ACC
As an IT contractor you are responsible for paying your ACC levies. The employee side will be included in your tax payment but because you are self employed you must also pay as the employer. ACC provides a range of online services for self-employed users to check levy account details, sign up for automated alerts and maintain their personal details. For more information, please refer to the ACC website www.online.acc.co.nz/LevyServices
What are the visa requirements for IT contracting in NZ?
You must have the right to work in the New Zealand to be considered for contracts with Beyond IT Contracting. If you are not a New Zealand or Australian national, we will reject your application unless you have secured, or are eligible for, a New Zealand visa. Unfortunately, we are not able to help you secure sponsorship through a New Zealand company.
Please see www.immigration.govt.nz for further information if you are unsure about your visa status for New Zealand.
What are some advantages of IT contracting?
As an IT contractor you have flexibility in how you work. You can decide what length of IT contract you take on and (unless a fixed daily rate has been agreed) you will be paid for the hours you work. As long as the client is happy, you can be more flexible in what hours of the day you work.
Variety
You will be exposed to a significantly higher number of companies and individuals. As a result you can gain a greater breadth of experience more rapidly than you would in a permanent position.
Why IT contracting might not suit you?
You need to be comfortable working in different environments and with different people on a regular basis.
As an IT contractor you are not entitled to sick and holiday pay and you won’t have access to company benefit schemes such as contributory pensions, healthcare and training.
Being self employed means there will be forms to fill in, rules to obey and accounts to keep, all of which you are responsible for (of course this is something you can get advice on and using an accountant can take away a lot of the paperwork.)
You may find that you have times between IT contracts where you can’t find work. This can be for a variety of reasons e.g. time of year or the general market conditions. Beyond endeavours to ensure that you are out of work for the shortest possible time. However, we can not guarantee what work we will have for you.
How and when am I paid?
Whilst on contract through Beyond you will be expected to complete and send through weekly timesheets that have been approved by the client. Then on the 1st of every month, you will be expected to send through your monthly invoice for the previous months work.
Payments are made the night of the 25th of the month following what you have worked, e.g. if you work from 1st August through to 31st August, you would invoice for the month of August and be paid on 25th September and then monthly from then on.
Why contract through Beyond?
We will keep in regular contact with you once you have signed up with Beyond. We have a large team who will keep in touch when you are looking for IT contracts as a candidate and once you’re working our Contractor Manager will always be available to meet for a coffee to answer any queries you may have.
All Beyond IT contractors are provided with indemnity insurance while on contract. This service is provided at no extra charge.
How do I find my next contract?
When your IT contract is coming to an end, your assigned Resource Manager will start looking for other opportunities for you.