Payroll and Tax

With the Absolute IT payroll system you’ll enjoy all the advantages of contracting, without the administrative burdens and risks. Our payroll system aims to take the pain out of payroll by keeping things easy, and paying you on time.

Contracting Pay Essentials

Contracting has many benefits such as higher pay, the ability to claim expenses, and the freedom of where and when you work. On the flip side, as a contractor, you are responsible for paying your own taxes, ACC levies, filing GST and year end Income tax returns and the associated compliance risks.

Tax Information

Should you commence a contract with Absolute IT, your relationship with Absolute IT is that of a self-employed person and accordingly, you are responsible for the payment of all taxes and other payments applicable under existing law including, but not limited to: GST, Withholding Tax, Income Tax and Accident Compensation Corporation levies.

We recommend you sign on with an accounting partner to ensure all compliance requirements are met in accordance with tax laws.

Provisional Tax

Provisional Tax is a form of income tax payment that is based on estimates of income in the current taxation period, for self-employed individuals or organisations. This form of taxation is applicable to self-employed contractors who elect to be responsible for paying their own taxes directly to Inland Revenue.

GST (Goods and Services Tax)

GST is a Government imposed goods and services tax, and is charged on all services supplied by our contractors at a rate of 15%. A GST registered contractor is expected to provide for, and pay GST, as directed by the Inland Revenue.

If you expect to invoice more than $60,000 in a 12 month period, then you must be GST registered and you must charge GST to your clients. For more information please visit the IRD website.

Payroll Details

Absolute IT uses an online timesheet and payroll system that ensures all contractors are paid on time for services rendered. We take all responsibility for collecting monies invoiced to the client.

All contractors get paid on, or around the 10th of each month via direct credit for the previous month’s work. Each contractor is given a payment schedule detailing time frames for sending documents to Absolute IT, and the exact date each month’s payment will be credited to their accounts, when they sign their contract.

Payment Schedule

Month Payment Date Date for final timesheets sent to approver (or invoice received if not BCTI)
February 2022 Thursday 10/03/22 Tuesday 01/03/22
March 2022 Tuesday 12/04/22 Friday 01/04/22
April 2022 Wednesday 11/05/22 Monday 02/05/22
May 2022 Monday 13/06/22 Wednesday 01/06/22
June 2022 Tuesday 12/07/22 Friday 01/07/22
July 2022 Wednesday 10/08/22 Monday 01/08/22
August 2022 Monday 10/09/22 Thursday 01/09/22
September 2022 Wednesday 12/10/22 Monday 03/10/22
October 2022 Thursday 10/11/22 Tuesday 01/11/22
November 2022 Monday 12/12/22 Thursday 01/12/22
December 2022 Friday 13/01/23 Wednesday 04/01/23
January 2023 Monday 13/02/23 Wednesday 01/02/23
February 2023 Friday 10/03/23 Wednesday 01/03/23
March 2023 Friday 14/04/23 Monday 03/04/23