contracting

Carejobz Angels are a team of independent contractors who step into facilities in need to bring years of aged care management experience where it’s needed the most.

Contracts are varied, they could be:

  • Ensuring homes are ready for an audit
  • Covering for an absent manager
  • Overseeing a project
  • Stepping in to help a failing facility get back on track
  • An “extra pair of hands”

Should I be a temp or a contractor?

We can offer you both options, these are the main differences

Temping

  • Temporary work tends to be short-term, so could include anything from a one day assignment or longer
  • Temporary employees are paid in the same way that a permanent employee is paid, which means their PAYE is looked after for them
  • Therefore, they also accrue holiday pay and receive any statutory entitlements as per the Holidays Act 2003
  • Temporary employees do not need to set anything up to start working

Contracting

  • Contracts can vary in length but are typically longer than a week. The length of contract will depend on what the contract role is for e.g. maternity leave, project work etc
  • Contractors are not given the same rights as permanent employees as they are effectively self-employed and often set themselves up as their own company
  • This means they are not eligible for holiday pay, sick pay or any other payments that an employer would make for permanent employees
  • It also means that a contractor is responsible for paying their own tax
  • Contractors who are likely to earn over $60,000 a year by contracting over a 12 month period are required to be GST registered, which means they are able to claim work related expenses through their own limited company
  • To account for this, contractors will typically receive a higher hourly rate than temporary workers

What we look from in a contractor

At least 3 years experience in an Aged Care Management position (We are looking for experienced Village Managers, Facility Managers & Clinical Managers to come on board)

A can do attitude and an open mind, we have contracts that come up across NZ

A track record of hitting the ground running when entering a new facility.

Flexibility, our contracts can run from 2 weeks up to a year

A clean driving license and willingness to travel

A valid APC if required

The right to work in NZ

How would it work?

  1. You agree to join our Carejobz Angels contracting team (no obligation to stay as a contractor, you can do this while looking for the right perm role if you want)
  2. You keep us informed of your availability and the locations you will travel to
  3. When a contract comes in we will contact all relevant contractors and give the opportunity to take the role
  4. We will send your profile to the client and arrange an interview (by Skype if the role is a long distance one) for you to fully understand what the contract requires
  5. If successful, we will agree on an hourly rate of pay for you to take this role on and send you a contract with all the details.
  6. At the end of each week, you will put in an electronic timesheet, through a link we send you, for the hours worked.
  7. The following week, your wages will be paid directly into your bank.

Setting up your business as a Contractor

As a Contractor, you need to think of yourself as a business of one. With this in mind to avoid snags along the way you need to address the commercial aspects of setting up as a contractor.

Manage your finances

As an independent contractor, you will be viewed in the eyes of the law as a company. In fact, you may choose to register a company to be the entity through which you contract out your services. Check out the IRD website for more on this as they have a useful tool to take you through things. You need to take care in understanding your obligations including the conditions that must be satisfied for you to be eligible to engage as a contractor.
Employee or Contractor?
Speaking plainly there are some tax benefits in being a contractor (you may pay less tax by claiming expenses for example) that are not available to regular employees, so it’s important to the IRD that you can show you’re not just avoiding paying tax!
Income tax
You need to manage your income tax obligations yourself. This will not be done for you, as it is when you’re an employee on PAYG where your employer retains the tax and pays it to the IRD on your behalf. When you are paid your contract fees, you will have to pay income tax on these. So make sure you don’t spend it! Seriously, many people do and then have large tax bills with the IRD. Put a conservative amount of tax aside. Get an accountant to help manage this.
GST
Another form of tax that may be paid to you in your fees, which amounts to 15% in New Zealand. Step 1 – register for GST. Step 2 – keep the GST you receive to pay the IRD. You can claim GST on items purchased for your business. Once again, get an accountant.
Claiming expenses
Know which expenses you can and can’t claim on. The IRD’s Tool will help understand this. Or, yes you guessed it, get an accountant.
One simple solution that we recommend to contractors is to engage a contractor management and payroll organisation who can handle most of the above on your behalf. They tend to enable tax savings for you that effectively fund their services.

Keep on the right side of the IRD.

If you missed the two prompts above – you really should get an accountant! As above there are tax, expenses and GST that can be claimed but unless you want to do the accounting yourself (not recommended) get a professional.

Invoicing capability

You’ll need to invoice whichever company hired you, likely on a monthly basis for the services you’ve provided. This can be as simple as using a template created in a spreadsheet or word document, but needs to contain key information such as your name (and your company name), your GST number, your bank account details, the hours worked and your rate along with a total including GST (if you’re registered for this). An accountant can also help you with this.

Have a rainy day account

Funds for when you take any kind of leave or for use if you happen to be out of work in between contracts. The cushion offered by employers around sick leave and annual leave, may not seem that comfortable until you no longer have it!

Indemnity & Liability

Most independent contractor agreements that you sign will require you to accept liability for breaches of statutes or regulations that may happen during your contract. In addition, you’ll probably be expected to indemnify one or multiple parties for direct or even indirect losses and damages that they may incur due to any breaches or negligence on your part. Serious stuff? Well yeah you need to be across this and understand these scenarios from both a legal and insurance perspective. You’ll probably need to (and should) carry both public liability and professional indemnity insurance, which of course carries a small cost too. Get an insurance broker and ideally a lawyer. You need to know where you stand and you need to have protection. Be proactive not reactive.
Simply put you’ll need to do some work to set yourself up properly as a Contractor. Once this is done however, the actual ongoing administration overhead is not particularly large. Let us know if we can be of any further help along the way and please contact us if you need further help.

Contracting – benefits to the employer

Fewer constraints on employment terms – no coverage by the Employment Relations Act (2000) or the Holidays Act (2003).
Scalability – resize the workforce as need be, either larger or smaller.
Access to some of the industry’s best talent that can hit the ground running with deep skills and experience.
Bring new skills into the business and only for as long as is needed.
Lower risk approach to ‘getting the fit right’. Should a contractor not prove to be as impactful as hoped, termination of the contract with notice (variable on the agreement, but typically 2 weeks) is straight forward.
So what’s in it for the contractors themselves? Surely this isn’t a one-way street right? Well perhaps not surprisingly to experience these company benefits requires an equally appealing set of benefits for contractors, to balance both sides of the equation.

Contracting – benefits to the contractor

More money – yes money talks. Depending on their seniority and individual skill sets contractors tend to earn 30 to 40% more than full time employees.
Tax efficiency – Yes another money benefit – as a self-employed Contractor, you can reduce tax by claiming expenses.
Greater variety of work – Contractors typically are brought in for one key project and then they’re off to their next project. This leads to a broad range of experience, which is both enjoyable and valuable for their career.
Greater flexibility – Many contractors enjoy the ability to slot in holidays between contracts. Some even take several months off every year to pursue their hobbies or travel.
Often a more arms-length relationship – which generally means less involvement in company politics! Many Contractors prefer keeping to themselves.
Let us know if you enjoy other benefits, either as an employer or contractor that we’ve not mentioned here.

Have a Question?

We are here to help. Email us or call 0508 800 221
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