Becoming an independent contractor gives you increased flexibility in your working life and allows you to take advantage of a range of opportunities within various organisations.
Before deciding to transition from permanent to contract work, it’s essential to weigh up the pros and cons. Our people are very experienced in placing contractors and are always here to talk this through with you. We also recommend you talk to an accountant or financial advisor before setting yourself up as an independent contractor.
A Contract with BrightSpark could last from a few weeks to several years, but most contracts will start at either 3, 6 or 12 months duration, with many extending well past their initial end date.
As an independent contractor, you are self-employed and can work as a sole-trader or set up your own limited liability company. You are responsible for all of your tax obligations including income tax, GST and ACC levies, and must ensure you file your returns with the IRD on time. If you earn over $60,000pa as an independent contractor, you are required to be GST registered, and can then be paid GST on top of your hourly rate. By law, we are required to take a percentage of your earnings as Withholding Tax, which we pay directly to the IRD.
If you are new to contracting and want someone to look after your tax obligations for you, BrightSpark recommends talking to Hnry.
All of our contractors are required to hold Public Liability (PL) and Professional Indemnity (PI) Insurance. If you do not have your own, then BrightSpark can provide cover of $20 million for both PI and PL. You are welcome to have your own insurance, however, you will need to provide us with the proof of insurance cover, and the client you are working for will need to confirm that the amount of protection is acceptable to them.
We pay contractors monthly and have an online timesheet and invoicing system that can be accessed here. While we will endeavour to chase any late timesheets and invoices, failure to submit these before the monthly deadline will result in you missing the pay cycle and not getting paid until the following month. We will provide you with a payment schedule, including when these need to be submitted and monthly payment dates before starting your assignment. If you have any issues with getting your timesheets approved, please notify us ASAP as we want to ensure you get paid on time.