Contracting has many benefits such as higher pay, the ability to claim expenses, and the freedom of where and when you work. On the flip side, as a contractor, you are responsible for paying your own taxes, ACC levies, filing GST and year end Income tax returns and the associated compliance risks.

Tax Information

Should you commence a contract with Absolute IT, your relationship with Absolute IT is that of a self-employed person and accordingly, you are responsible for the payment of all taxes and other payments applicable under existing law including, but not limited to: GST, Withholding Tax, Income Tax and Accident Compensation Corporation levies.

We recommend you sign on with an accounting partner to ensure all compliance requirements are met in accordance with tax laws.

Provisional Tax

Provisional Tax is a form of income tax payment that is based on estimates of income in the current taxation period, for self-employed individuals or organisations. This form of taxation is applicable to self-employed contractors who elect to be responsible for paying their own taxes directly to Inland Revenue.

GST (Goods and Services Tax)

GST is a Government imposed goods and services tax, and is charged on all services supplied by our contractors at a rate of 15%. A GST registered contractor is expected to provide for, and pay GST, as directed by the Inland Revenue.

If you expect to invoice more than $60,000 in a 12 month period, then you must be GST registered and you must charge GST to your clients. For more information please visit the IRD website.

Payroll Details

Absolute IT uses an online timesheet and payroll system that ensures all contractors are paid on time for services rendered. We take all responsibility for collecting monies invoiced to the client.

All contractors get paid monthly via direct credit for the previous month’s work. Each contractor is given a payment schedule detailing time frames for sending documents to Absolute IT, and the exact date each month’s payment will be credited to their accounts, when they sign their contract.

Payment Schedule

To view timesheet submission deadlines, client approval deadlines, and payment dates for this financial year, click here.