Setting Up as a Contractor

If you’re looking to make the jump into contracting but don’t know where to start (when it comes to being self-employed), then you’re not alone! There are obviously a few questions you’ll need to consider before starting out; is my skill set in demand? Am I ready? And once you’re comfortable with your decision, what about taxes/KiwiSaver/ACC? 

While a lot of people choose to do this part themselves (or via their own accountant), there are various alternatives for those people who don’t want to worry about their financial obligations. At Potentia, we work closely with Hnry, a NZ tax agency who handles the financial obligations of many of our contractors, while replicating typical PAYE payments. 

Government Obligations

So, what are your obligations when setting up as a contractor? Whether you’re going it alone, or enlisting the help of a financial organisation, there are a number of Government obligations that you’ll need to be aware of:

1. Registering as a Sole Trader/Company

2. Income & withholding tax

3. ACC levies

4. GST

5. KiwiSaver

6. Student loan repayments (if applicable)

For more information on setting up as a contractor, visit the Government website. Or if you’d like someone to take care of the financial side of things for you, get in touch with Hnry.

Requirements When Contracting with Potentia

Aside from the Government, there are a few things that we (and our clients) request before you’re able to start contracting with us. These include a criminal history check, a credit check, two verbal references and PI/PL insurance. As a contractor you’ll be liable like any other business, so it is important that you are insured for professional indemnity and public liability. If you’re after convenience, Potentia offers a Pay-As-You-Go to all contractors. Speak to your Account Manager for more information. Otherwise, you’ll need to arrange insurance yourself and provide us with a valid insurance certificate.