New Employment Type NZ: Independent Contractor

Overview: We’ve introduced a new employment type, “Independent Contractor,” to streamline the onboarding process for contractors without needing Tax and Superannuation details. This enhancement is designed to improve efficiency for users managing contractors.

Key Benefits:

• Streamlined Onboarding: Administrators can now create onboarding flows that exclude the Tax Declaration and Superannuation steps, reducing unnecessary paperwork for Independent Contractors.
• Enhanced Flexibility: Super Users can customise and publish onboarding forms, allowing them to tailor the process for contractors as needed.
• Improved Compliance: Warnings and audit logs ensure that any removal of mandatory steps is acknowledged, providing a clear audit trail for compliance purposes.

These changes make it easier to onboard contractors while maintaining flexibility and control over the process.

When selected, the Kiwisaver settings are auto populated and locked as not eligible for KiwiSaver, with Ineligibility Reason "Working as an independent contractor".

The tax code will auto populate and lock to Tax Code WT.

And new required fields will appear requesting the *Tax Rate, *Trade name, and NZBN if applicable.

Filtering positions on location level is also possible by creating Independent Contractor locations, and setting the Employment Type to Independent Contractor.

Employment Type Independent Contractor:

The Independent Contractor employment type has been added to the existing Employment Types for New Zealand (NZ), and soon for Australia (AU) and United Kingdom (UK) clients. This includes Trade Name, Australian Business Number (ABN), and Goods & Services Tax (GST) registration status, ensuring accurate documentation and compliance with regulatory requirements.

Availability:
This option is available in Employee Importer, Manual Add Employee, Onboarding, and Rehire processes. For the Independent Contractor type to flow to the pay engine, it must be activated in the pay engine. It is enabled by default for all platforms created post-2020. If it’s not available, please reach out to support for assistance.

For existing employees, the employment type can be updated under the Finance and Payroll tab by selecting the Employment Type.

• When selected, the KiwiSaver settings are automatically populated and locked as "Not eligible for KiwiSaver," with the ineligibility reason set to "Working as an independent contractor."
• The tax code will automatically populate and lock to "Tax Code WT."

New required fields, including *Tax Rate, *Trade Name, and NZBN (if applicable), will also appear.

Filtering positions at the location level is possible by creating Independent Contractor locations and setting the Employment Type to Independent Contractor.