contract working question
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Category: General Chat
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URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=19129
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Topic: contract working question
Posted By: Spudling
Subject: contract working question
Date Posted: 14 July 2008 at 5:22pm
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I have been offered a job working about 8 hours a week on contract and I just kind of want to know what it involves, how much tax do you have to pay, what you miss out on (ie holiday pay, and then how much that actually is ) and what you have to do for the IRD and anything else.
I can't decide whether or not to take this job and just want to know how much more per $1 earned I have to pay out if you know what I mean ------------- http://tickers.families.com"> 
http://tickers.families.com"> 
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Replies:
Posted By: .Mel
Date Posted: 14 July 2008 at 5:28pm
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So do you want to know what you'll pay in PAYE? The IRD website have a section where you can work out what you'll get gross and then what you'll take home... I'm not sure about HP.. ------------- Mr Mellow (16) Miss Attitude (8) Destructa Kid (3) 
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Posted By: Spudling
Date Posted: 14 July 2008 at 5:43pm
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I don't really know what I want to know, as I have always just been paid wages so don't know what being on contract really means....sorry, dim Mother that has been out of the workforce in NZ for a long time.... ------------- http://tickers.families.com">
http://tickers.families.com">
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Posted By: Jay_R
Date Posted: 14 July 2008 at 5:58pm
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If you are contracting then you'll need to claim/pay GST every time you invoice the company you are working for.
You'll also need to pay, where applicable, ACC Levy, Provisional Tax and/or Witholding Tax. Can be quite a bit of extra work come tax time, but you have the ability to charge much higher hourly rates. Check out the IRD website - Business Tax - www.ird.govt.nz |
Posted By: myfullhouse
Date Posted: 14 July 2008 at 6:02pm
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I would have thought it depended exactly how the job was set up. If you are contracting therefore invoicing the company for your services then the above post applies.
If you are on a fixed contract i.e. they only ask you to work for 6mths etc then you may just be on wages 'as per normal' however you will likely get 8% on top of your hourly wage in lieu of accruing annual leave. I now have a casual contract with work and this is how it works for me. You may just want to clarify it with the company first ------------- Lindsey 
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Posted By: peanut butter
Date Posted: 14 July 2008 at 7:12pm
| I dont think you have to register for GST until you are earning over a certain amount. I could be wrong but that is my understanding. You can voluntarily register though...but why bother....too much hassle. |
Posted By: MummyFreckle
Date Posted: 14 July 2008 at 7:24pm
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I have been a contractor for about 9 years now (as has DH), we work on the principle that we put about 35% of earnings away to cover tax, gst, acc etc. We also put a lot of our costs through the company (obviously only valid costs that are related)...like internet, cellphones, carparking etc, which means that we can claim the gst on those. As Joshierocks mentioned - it can be quite time consuming with all the tax paperwork, and it pays to keep on top of it...but you do get to charge a much higher hourly rate. Being a contractor is different from having a fixed term contract, and there are different considerations when it comes to tax.... We have found that having a good accountant is invaluable, as if you are registered as a company you will need to do yearly returns etc. ------------- http://lilypie.com">  http://lilypie.com">
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Posted By: Spudling
Date Posted: 14 July 2008 at 7:31pm
thanks heaps girls, it is def contracting over a fixed term contract (that bit I did get  )
anyhow, thanks again, now I have a better idea on how much I need to charge hourly you are all  's , as always ------------- http://tickers.families.com">
http://tickers.families.com">
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