​Contracting is a significant part of the technology market..

Thinking of branching out on your own but not sure where to start? Between opportunities and not ready to commit to a full-time position? Enjoy working on a project basis? Wanting more flexibility?

Independent contractors are significant players in the technology market and specifically, the technology industry. Our clients will come to us
with a specific outcome/project they have in mind to be delivered, as post this, they won't require a permanent staff member. They utilise our services because of our in-depth access to talent in the market, and our ability to turn around highly qualified capability.

 Being a contractor can be rewarding, but certainly isn't for everyone, so here are some key things to consider before you branch out:

    • Why Go Contracting

    • Setting Up as a Contractor

    • Contracting via Recruit I.T.

    • Contractor Rate Guide

Why Go Contracting?
    1. Flexibility: Contracting offers excellent flexibility and allows you to tick off your bucket list in between assignments.

    2. Try before you buy: Contracting allows you to get a feel for the culture, the team and the job before making a long-term commitment to a specific role or company.

    3. Broaden Experience: Contracting allows you the opportunity to broaden your experience across various projects, sectors, and situations. You can add more strings to your bow and increase your professional development.

    4. Financially Rewarding: Contractors get paid a premium and have the opportunity to earn more than if you were to work in a permanent role.

    5. Networking: As a contractor you are continually going into new environments and networking as you start engagements. It is a great way to meet new people, build your reputation and hear about new job opportunities,

    6. Constant Challenges: Contracting is great if you are someone who gets bored quickly and needs constant variety in projects and work environments.

    1. Reduced Security: Along with the contracts being typically 3 – 6 months, as a contractor your job security is less than that of a permanent staff member. Usually contractors are the first to go within a restructure or where any cost-cutting measures are applied.

    2. Potentially Irregular Income: There is the risk that the gap between contracts could be weeks. You will need to budget for this.

    3. Limited Career Training: With out access to formal workplace training programmes, you will need to plan and cover the costs for any certifications and development you want to do.

    4. Administration: Time and energy is required to keep on top of your taxes, and the potential setup of a company. One of our partners HNRY also provide an end to end service, can assist here!

    5. Constantly Looking: As a contractor, you naturally want to ensure you have work lined up post your contract end date. Searching involves time and energy and is where having a good relationship with a recruitment agency (and of course Recruit I.T.) has its benefits.

    6. No Annual Leave or Sick Leave: As a contractor, it is simple, - if you aren’t working you don’t get paid!

Contractor FAQs

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 as HNRY.

You must register for GST if your annual turnover for the previous 12 month period has exceeded $60,000, if you expect that 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.

As an independent contractor you are solely 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 a lot of people choose to do this 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 which provides a service to manage all your finances and tax obligations. If interested, get in touch with your Recruit I.T. consultant for a discount code.

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.

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 market rates.

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

You do. You will need to plan for your own retirement, as you will not be making KiwiSaver contributions from your PAYE. KiwiSaver contributions need to be paid directly to your provider.

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.

No. As a contractor, you don’t receive sick, maternity, bereavement, or statutory leave, or holiday pay. This means the annual 31 paid days off you’ve previously looked forward to become less enticing, because you aren’t earning any income.,

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

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, payment will be processed the business day prior.

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 the contract is likely to be renewed. If it is, a new assignment confirmation will be produced for you to sign.

Contracting via Recruit I.T.


    • Receive payment earlier than going direct

    • Recruit I.T. are BTCI (Buyer Tax Created Invoice) approved by the IRD. This means we provide you an invoice without you needing to create one.

    • Discounted PI & PL Insurance

    • Cloud-based Timesheets & Payslips

Payment Schedule

Recruit I.T. uses a cloud-based timesheet and payroll system that ensures all contractors are paid on time. All contractors are paid monthly and given a payment schedule detailing the timeframe for sending documents and payment dates.

If you miss your timesheet and invoice deadlines your payment may be delayed. If you think you may have trouble meeting the timeframe, please contact our finance team to discuss options.

PI & PL Insurance Offering

Our clients require our contractors to maintain their own Public Liability and Professional Indemnity insurance. Essentially this protects you legally and financially from any mistake or error you make while doing work, including any loss that your clients might suffer as a result of this. When you are an employee of a company you do not have this risk, as you are a part of the organisation you are working for and subsequently covered under their professional indemnity insurance policy. It is for this reason that independent contractors purchase liability insurance to protect them from the risk of causing a significant loss to their client which they either couldn’t or wouldn’t want to pay for out of their own pocket.

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’ rates.


​​If you are after a particular skill set that isn’t outlined in our Salary Guide please

 Get in Touch

If you would like to see what contracting opportunities are available, please check out Our Jobs


Alternatively, if you would like to speak to one of our consultants to understand the market and demand for contracting in your chosen skill set then check out Our Team