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| Thread ID: 96485 | 2009-01-12 01:08:00 | Payment for casual/contract work? | susann (12077) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 737653 | 2009-01-12 03:45:00 | Sorry, no link intended just a statement to suggest that Susann verify my understanding :) | smurf (6545) | ||
| 737654 | 2009-01-12 04:40:00 | When I was tempting. Even when I did just one day of work for one workplace there was a contract to be read and signed. That form etc .. will ask the relevant details for your bank account #, GST IRD #, tax codes etc.... |
Nomad (952) | ||
| 737655 | 2009-01-12 04:53:00 | Yes you need to worry about tax. As a NZ resident you must declare all of your earnings. Whether this is on a PAYE or contractor basis won't really make any difference, except that as a contractor you will be able to claim some expenses incurred when earning income as a contractor. Keep in mind that as a contractor the expenses will be relatively low relative to the income (about 10%) so depending on the level of income the tax benefit will be 20-30% of 10% of the earnings, that's about $25 for every $1000. The downside is that as a contractor you will have to make a lump sum payments for income tax, ACC and student loan after each tax year. My recommendation is that it would be simpler to be an employee on a secondary tax rate at your old job*. In any case, if the earnings from the old job exceed 20% of your total taxable income, then (insofar as the IRD is concerned) you don't actually have much of a choice. *If you accumulate enough ex-jobs then it would absolutely worth being a contractor. As an employee I recommend you still file a tax return because the secondary tax rates may result in an income tax refund at the end of the tax year. Andrew |
andrew93 (249) | ||
| 737656 | 2009-01-12 05:52:00 | You can have a short term contract as many times as you need to work for them, and they don't have to keep your holiday pay it can be added to your weekly pay as it would be too hard to work out, if you went back to them and said I have worked 23 hours for you this year am I entitled to a day off on holiday. My advice just get them to pay it to you, can't say about your student loan though | gary67 (56) | ||
| 737657 | 2009-01-12 07:51:00 | I think there are no hard and fast rules here, it depends on what arrangement you have with your employer. After being made redundent I did part time contract work for my ex employer. I was effectively a self employed contractor and had to arrange to pay taxes and cover sick and holiday leave at my own expense. Most jobs were done on fixed price contract i.e. they would say do Y I would give them a price and if they agreed we were off running. Occasionly there were open ended jobs that I did that we agreed on an hourly rate ( about 4 time what they paid me when I worked there full time!) and I submitted an invoice at the end of the month. One thing I did arrange and was important because of the nature of the work, was that they idemnified me against any third party liability the same as if I was a full time permanent employee of the firm. | tutaenui (1724) | ||
| 737658 | 2009-01-13 04:12:00 | Casual work has holiday pay incorporated into the rate-ie basic rate plus 6% if ther norm is 3 weeks annual holiday, 8% if there is a norm of 4 weeks annual leave - this is only on basic rates ie no overtime. If you are working as a self employed contractor, then as there will be no statutory holidays pay, no sick leave allowance, no annual leave, and you have to pay your own ACC levy, so you need at least 20% on the normal houly rate to be breaking even as a self employed contractor. If the IRD accepts that you are a self employed contractor, then some expenses are claimable, usually fairly modest, but one snag is provisional tax - ie paying tax in advance on projected earnings. |
KenESmith (6287) | ||
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