Contracting

Our aim is to provide our contractors and consultants with outstanding service, reflecting the high level of professionalism, respect and back-up support you need. We invest the time to touch base regularly. This helps to ensure that our placements proceed smoothly and any questions receive timely responses. If an issue arises, we make every effort to resolve it, acting as a skilled facilitator between the client and contractor.

Please ensure that you read the information below to ensure that you are aware of your responsibilities as a Younity contractor.

Thinking about contracting? Here’s what you need to know

Contracting is the perfect way to enjoy some flexibility in your work and an opportunity to take advantage of a range of projects while gaining experience within different organisations. A contract can last anywhere from a week to five years, although usually they come in three-to-six-month blocks which can be easily extended (and often are). A good contractor will often be given multiple extensions. Their reputation precedes them when they’re looking for a new contract. As a contractor you are fully self-employed and can work as either a sole trader or within your own limited liability company. You will be paid an agreed hourly or daily rate plus GST (if you’re registered). We recommend that you talk to an accountant if you have any questions about setting yourself up as a contractor.

Fixed-term Contracts (FTC), which you may see advertised, are completely different. In a FTC you are employed by the organisation you’re working for and are treated as a permanent employee. The difference is that a FTC has a fixed-end date. They are often used to cover parental leave or sabbaticals.

 

Being a contractor

As a self-employed person it’s your choice as to how you set yourself up as an independent contractor. Some people set themselves up as a sole trader, while others prefer to set up their own limited liability company. If you’re completely new to contracting and just dipping your toe in the water, there are experts who can look after the whole process for you. Contact us for more information if this is something you’d like more information about. As a contractor you are representing both yourself and Younity when you’re on site and therefore must act appropriately and conduct yourself in a professional manner at all times. Your rate will be either an hourly or a daily rate. This will be determined by the client for whom you’re working. The majority of clients tend to prefer a daily rate.

Tax Obligations

As a self-employed contractor you are responsible for paying income tax, GST and ACC levy and for making sure that all your returns are filed with the IRD on time.

Since April 2017 all labour-hire organisations such as Younity are required to take a percentage of your earnings as tax and to send it directly through to the IRD – this is covered under the term Schedular Payments. The level of tax deducted by Younity is determined by the rate you stipulate on the IR330C form. If you fill in the form but don’t stipulate a percentage then we are required to deduct 20%. If you don’t fill in a form then we are required to deduct the no-notification rate of 45%, so it’s worthwhile checking that your IR330C form is filled in correctly and on time. If you feel you have reasonable cause, you can apply to the IRD for an exemption from Schedular Tax. You need to fill in form IR23BS.

If you are a self-employed contractor and earn over $60,000 p.a. then you are required to be registered for GST. We pay GST on top of the hourly/daily rate but we can only pay this if you’re GST registered and provide us with your GST number.

Insurance

We require all contractors to have public indemnity (PI) and professional liability insurance (PL) before starting work on a client’s site. You can either take advantage of Younity’s own insurance policy, which gives cover of $10 million PI and PL, or you can take out your own insurance. The advantages of Younity’s insurance include the high level of cover and the fact that you only pay insurance for the days/hours worked.

If you choose to take out your own cover then we require that you arrange a minimum cover of $2 million PI and $2 million PL. If a client requires a higher rate of cover then you must ensure that your own cover matches their minimum requirements. If you do take out your own insurance cover then you must send us a copy of the certificate prior to starting and ensure that the insurance is kept up-to-date and new certificates are sent through to us. It is recommended that you keep insurance cover for seven years following the end of a contract.

Health & Safety

At Younity we take our responsibilities towards health and safety (H&S) seriously and are fully compliant with the Health and Safety at Work Act 2015. All contractors are required to complete an online health and safety induction prior to commencing a contract. If you haven’t completed one in the previous two years, you have to agree to and sign the Younity Health and Safety Policy. As a self-employed contractor you are also a PCBU (a person conducting a business or undertaking) and you should have your own H&S policies and processes in place. In your first week contracting at an organisation you should receive a H&S induction by the client. You must follow the client’s policies and procedures around H&S at all times. If for any reason you have concerns about any aspects of H&S during the duration of the contract then you must contact us immediately.

Timesheets

We use a system called Flexitime/Invoxy. You are required to fill in your timesheets on a weekly basis then submit them so they can be authorised by your timesheet approver. Flexitime/Invoxy is a simple and easy system to use. We will send you a link and instructions about how to use this prior to you starting your contract. Your timesheet also acts as your invoice to us. From this we create a Buyer-created Tax Invoice (BCTI) which you can access through Flexitime/Invoxy and use for all your accounting purposes.

We chase all missing timesheets, but please be aware that a late timesheet at the end of the month can result in you missing the pay-cycle, so please ensure that all timesheets are filled in promptly. Notify us if your approving manager is away and let us know as soon as possible if you’re experiencing any problems! We want to make this easy for you.

Payroll

We pay our contractors on a monthly basis and take all our information on hours/days worked from approved timesheets (see above), so please ensure your timesheets are submitted on time. A month for us runs through to the last Friday of the month. It is a mix of four-week and five-week months (generally in a quarter there are two four-week months and one five-week month). You will be sent a payment schedule when you sign your contract.

We hope that this answers most of the questions that you may have relating to contracting through Younity. If you have any further questions, then please don’t hesitate to contact us at info@younity.co.nz.

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