Contracting in NZ

Contracting gives you flexibility, variety, and the chance to work on projects that make an impact. At Recruit I.T., we connect tech professionals with contract opportunities across Aotearoa, providing guidance on rates, market trends, and the support you need to succeed as a contractor.

Why Go Contracting?

Not sure where to begin? Maybe you’re between roles, not ready to lock into something permanent, or simply enjoy project-based work with more flexibility.


In New Zealand’s tech industry, independent contractors play a vital role. Many of our clients need experts for a specific project or outcome rather than a permanent hire. They turn to us because we know the market inside out and can quickly connect them with the right capability.


Contracting can be hugely rewarding, but it’s not the right fit for everyone. Before you take the leap, here are a few things worth considering:


  • Pros and Cons of Contracting
  • How to Set Yourself Up
  • Contracting with Recruit I.T.
  • Our Contractor Rate Guide

Pros and Cons of Contracting

Pros


  • Flexibility: As a contractor, you set the pace. Enjoy freedom between projects and fit work around your lifestyle.
  • Broader Experience: Each contract exposes you to new projects, industries, and teams, helping you grow your skills and strengthen your CV.
  • Financial Rewards: Contractors are often paid at a higher rate than permanent staff, with the potential to earn more overall.
  • Networking: Moving between contracts means meeting new people, building your reputation, and uncovering fresh opportunities.
  • Variety and Challenge: If you thrive on change and dislike routine, contracting offers constant new challenges.

Cons


  • Less Security: Contracts usually run 3–6 months, and contractors are often the first to be affected by restructures or cost-cutting.
  • Irregular Income: Gaps between contracts are possible, so budgeting becomes essential.
  • Limited Training: Professional development is your responsibility—you’ll need to fund and plan for courses or certifications.
  • Admin Load: From taxes to invoicing, there’s admin to manage. Partners like Hnry can help streamline this.
  • Always Searching: You’ll need to line up your next role before your current contract ends. Working with a recruiter like Recruit I.T. makes this easier.
  • No Paid Leave: Contractors don’t receive annual or sick leave—if you’re not working, you’re not earning.

Support for Contractors

Contracting can be rewarding, but it also comes with questions. We make it easier to navigate the process, especially if you’re new.

  • Transparent Setup: We’ll walk you through how PAYE, GST, invoicing, and IRD requirements work — including what you’ll need to register and what systems we use.


  • Dedicated Consultant Support: Your consultant is your contact throughout your contract. We’ll check in regularly and work with you to solve issues, adjust timelines, or explore your next role.


  • Resources for New Contractors: From setup guides to IRD registration checklists and timesheet FAQs — we’ll send you everything you need to get started with confidence.


  • Feedback Loops: We’ll ask how things are going — and take it seriously. Your input helps us continuously improve how we support both you and the clients we work with.

Frequently Asked Questions:

If you are after information on a particular skill set that isn’t outlined in our Salary Guides or Market Updates, please contact us directly.

  • Are all your contract roles advertised?

    No. The majority of our roles are not advertised, due to the breadth of our existing relationships with both our contractors and clients in the market. If you are wanting to look for your next contract role, or perhaps moving from permanent to contract, please get in touch with one of our consultants to discuss what opportunities you might be suitable for, and upcoming projects we have lined up.

  • Do I have to set up a limited company or be GST registered to go contracting?

    No. You do not need to set up a limited company to go contracting. Many of our contractors are a mixture of GST Registered, Limited Company, or working via a Tax Agency such asHNRY.


    You must register for GST if your annual turnover for the previous 12-month period has exceeded $60,000, if you expect your turnover will exceed $60,000 within the next 12 month period, or if you charge GST in your prices. If you’re not already registered for GST as a sole trader, you can do this through the IRD website – it only takes a couple of minutes.

  • Who pays my taxes when I'm a contractor?

    As an independent contractor, you are soley responsible for all taxes in respect of the services you provide. This includes but is not limited to ACC levies, income tax, GST (if applicable), and all other liabilities whatsoever. While many people choose to pay their own tax themselves (or via their accountant), there are some alternatives for those who don’t want to worry about it all. At Recruit I.T., we partner with HNRY, an NZ tax agency that manages the finances and income tax obligations of the self-employed and independent contractors. If interested, get in touch with your Recruit I.T. consultant for a discount code.

  • What is contractor withholding tax?

    Effective from 1 April 2017, Recruit I.T. (and all other recruitment agencies) are obligated to deduct withholding tax (WT) from all payments made to you and report this to IRD monthly. You need to complete and send us the tax notification form IR330C prior to starting your contract.

  • What rate should I charge as a contractor?

    There are various factors to consider when assessing the rate. However, please check out our salary guide here, or speak to your Recruit I.T. Consultant for guidance around the current market rate

  • ​Why should I contract via Recruit I.T.?

    Please see below for the benefits of contracting via Recruit I.T.

  • ​Who contributes to my KiwiSaver?

    You do. You will need to plan for your own retirement, as your independent contracting arrangement means the employer is not required to hold contractor records, contribute to KiwiSaver or deduct PAYE. KiwiSaver contributions need to be paid directly to your scheme provider.

  • Can I claim expenses as a contractor?

    Business expenses incurred are reimbursable only if you have pre-arranged this with your client and you keep your tax receipts. Please contact your Recruit I.T. Consultant for details on how to make a claim.

  • ​Do I get any leave benefits as a contractor?

    No. As a contractor, you don’t receive any employee entitlements. This includes maternity, personal grievance, statutory or sick leave, or paid holidays. This means the annual 31 paid days off you’ve previously looked forward to may be less enticing because you aren’t earning any income.

  • ​Can a contractor take leave?

    Yes. Please discuss your holidays and leave with your client initially and then inform your Recruit I.T. Consultant.

  • ​When do I get paid?

    Your invoice will be paid on or around the 25th of each month for the previous month’s work. If the 25th falls on a weekend or public holiday, you will get paid the business day prior.

  • ​How does my contract get renewed?

    Approximately six weeks out from the end of your contract term, your Recruit I.T. Consultant will liaise with you and the client to discuss whether your independent contractor agreement is likely to be renewed. If it is, a new assignment confirmation will be produced for you to sign.

  • Where can I find additional information about contracting?

    Business.govt.nz - https://www.business.govt.nz/


    KiwiSaver - https://www.ird.govt.nz/kiwisaver


    ACC - https://www.acc.co.nz/


    Contracting vs Employee - https://www.employment.govt.nz/starting-employment/who-is-an-employee/difference-between-a-self-employed-contractor-and-an-employee/

Contracting with Recruit I.T.


Benefits of Contracting with Recruit I.T.
We’re more than just a recruiter—we’re your advocate. Our consultants keep your contracts moving and connect you with new opportunities across our network.


Why contract with us?

  • Faster Payments: As BTCI approved with IRD, we handle invoicing and pay you quicker.
  • Discounted Insurance: Access affordable PI and PL cover.
  • Simple Systems: Cloud-based timesheets and payslips, easy and reliable.


Payments Made Simple
You’ll be paid monthly through our secure payroll system, with clear schedules so you always know when to expect payment. Our finance team is here if you ever hit a snag.


Insurance Sorted
Contractors need their own PI and PL insurance. We make it easier with discounted options that protect you financially and give you peace of mind.

Contractor Rate Guide

As one of New Zealand’s leading agencies in the technology sector, we have access to a range of salary data, particularly around contractor rates in the current market. Please feel free to download your complimentary Recruit I.T. Salary Guide covering contractors’ market rates.


​​If you are after a particular skill set that isn’t outlined in our Salary Guide or would like to speak to one of our consultants to understand the market and demand for contracting in your chosen skillset then, please get in touch.

Download Our Contractor Rate Guide

Contract Roles Available

Contractor Resources

Whether you're new to contracting or a seasoned professional, these tools and guides are here to help. Download our free resources or read some of our blogs and updates.

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