Contracting is an amazing way of life with many perks and benefits
You will have the potential to earn more money as you’ll get paid an hourly or daily rate.
Work / life balance
As a contractor you will have greater flexibility and be able to determine where and when you work.
Explore different industries and workplaces
Contracting enables you to test out a variety of industries and companies to more easily find the best ones for you.
With the freedom to move between contracts in the tech market, you will quickly grow your skill set and experience.
Unlike when you’re employed on a salary/PAYE basis and have income tax automatically paid by your employer, as a contractor it’s your responsibility to calculate and pay the right amount of tax to IRD every year. Many contractors choose to do this part themselves but if you’d rather not worry about the admin you may want to use an accountant who will handle tax calculations, payments and filing on your behalf.
If you incur expenses as part of your contracting work, you can claim them yourself, via your own accountant.
There are different types of insurance but typically digital contractors take out Professional Indemnity and Public Liability insurance that comprehensively protects you and your business. Professional Indemnity insurance helps protect against legal costs or claims for any negative impact of your work to third parties (eg the company you are contracting to) and Public Liability covers any third party property damage or personal injury (not covered by ACC) incurred in the course of your business activities. For more information on taking out an insurance policy you can compare cover from New Zealand's leading business insurance providers or speak to your Digital Garage Account Manager
Working as a contractor in the digital/IT market can be a lucrative option. When contracting out to a client organisation through Digital Garage you will need to complete weekly timesheets to be paid regularly and on time every fortnight.
If you earn more than $60,000 from contracting/freelance income in a single financial year, you are required to register for GST and file a GST return on a regular basis. If you earn less than $60,000, registering for GST is optional.
To register for GST, log into your MyIR profile and select “Register for a new tax account”.
Definitely. Give us a call about it too. We love a good chat.
Among other things, we offer online timesheets, fortnightly pay, WHT administration, a huge variety of clients, a wide variety of jobs, friendly staff, RCSA members, and an easy online digital experience
We understand that starting out can be overwhelming, so we are on hand to help guide you through the process and new responsibilities. These are things that would normally be taken care of by an employer, for example income tax, GST, ACC and Kiwisaver.
As a contractor you are self employed.