How Can The Detail Help You?
As a recruiter, your job is to act as the go-between for contractors and business owners and make sure the whole process runs smoothly.
Let us take care of the details!
A huge part of your job is making thing easier for both sides. The contractors on your books often don’t understand how to invoice, pay their taxes, register for GST, and/or fill out their timesheets. Business owners often need to know how to effectively manage their payroll to include contractors without creating an admin nightmare.
Partnering with the Detail you have the opportunity to add value to your clients by making it easy for both contractors and businesses to manage their admin and compliance obligations to stay on the right side of the IRD.
The Detail can solve both these issues. Here’s how…
Offering payroll services
A situation you’ll see come up time and time again is companies who decide to use contractors to reduce their employment risk. These companies often prefer to outsource the payment of their contractors to recruitment agencies like yours. Recruitment companies often charge a fee of 7%-12% of the contractor’s fees to the business to manage this process. The problem here is that this can create a conflict of interest. What this means is that a recruitment company gains access to personal details of contractors and they can then try and offer those contractors other jobs. Also, many contractors aren’t sure how to invoice or fill out timesheets or do their taxes. When they ask recruitment companies for help, they’re often left in the dark.
Get it right first time...
How we can help
We can run the onboarding and payroll services between contractor and business. This removes the conflict of interest and also creates a streamlined process for both sides to get their admin sorted and invoices paid faster.
We’re great for contractors because we:
- Explain how to do the payroll process and onboard contractors properly.
- Look at their tax position and ensure they are in the correct structure.
- Make sure that they are GST registered if they need to be.
- Give some suggestions/advice as to what they could be claiming for expenses.
- Provide great insurance options.
- Can help sort out problems for contractors when the payroll process goes wrong.
We’re great for employers because we will:
- Manage the on-boarding process for each contractor.
- Send a single, GST inclusive tax invoice for all of contractors’ hours.
- Require just one payment to cover all contractors.
- Process contractors’ tax, ACC and KiwiSaver deductions, including overseas payments to local staff.
- Charge less for more value.
- Eliminate any potential conflict of interest.
We’re great for YOU because we:
- Enable you to offer a streamlined service that solves problems for both contractors and business owners.
- Create a USP for your business that sets you apart from other recruiters.
- Eliminate potential conflicts of interest.
- Charge 5% fee for our services, enabling you to add your percentage on top without any additional work.
- Take care of support and troubleshooting to free up your time for revenue generation.
Want to know more? Talk to The Detail today.
What a first-time contractor needs to know about tax, compliance and administration.
How does it all work?
Independent contractors tax obligations 101…
As an independent contractor in New Zealand, the workforce
- Are self-employed.
- Can make choices around the work they do.
- Are responsible for paying their own taxes.
There are lots of advantages to being a contractor – freedom, possibly being paid more, flexibility, etc. However, there are some aspects of contracting that your clients should be aware of, such as the fact they don’t get paid for gaps between contracts, annual leave, sick leave, or public holidays (unless they work as well). Many contractors (especially those just starting out) aren’t familiar with the rules and regulations. The more you can help them understand their rights and responsibilities, the easier the recruiting process will become.
We'll make sure to dot the I's and cross the T's...
Independent contractor agreement
This protects the rights of both parties and makes clear responsibilities. Many recruiters offer template contracts for business owners and contractors – if you do this, make sure your contract has been drawn up by a qualified lawyer. The contract should contain:
- The work that will be done, how much of it, and how the contractor will be paid for it.
- How long the contract will last – is it open-ended, or does it expire on a certain date?
- The expenses and allowances the contractor is allowed to claim from the client.
- How disputes will be settled. (Contractors can’t raise a personal grievance, so they need an alternative dispute process).
- The contractor’s responsibilities around confidentiality, competing businesses, and client information. (For example, many contracts forbid working for a competitor or contacting clients of the company after the contract period ends).
- A process for terminating the contract.
- If the contractor is required to take out any kind of insurance and what liabilities they assume.
- If any restrictions apply, such as the ability to subcontract out work.
- Who will own any intellectual property developed as part of the contract.
For more information about independent contractor agreements, see the Business.govt website.
Key Contracting questions, answered
Helping your contractors understand how the business works will make the process smoother for everyone involved. Here are the most common questions you may receive about contracting, and their answers.