Contracting FAQ

We have compiled a list of the most frequently asked questions about Contracting in Ireland. If you don’t see the answer to your question here, get in touch and we’ll answer it for you.

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  1. What is Contracting?
  2. What are the Benefits of Contracting?
  3. What Are the Main Differences Between Employees and Contractors?
  4. What is Daily Rate Contracting?
  5. What Happens When My Contract Finishes?
  6. How Does Berkley Help Contractors?

What is Contracting?

Contracting refers to when a skilled professional provides their skills to a client organisation. The contractor will provide these services for a pre-agreed length of time. Contractors are independent, in other words, they are not employees of the organisation. Rather they are self-employed through their own limited company or they utilise the services of a specialist tax accountancy firm. 

What are the Benefits of Contracting?

  • Gain Diverse Experience

    Contractors can freely move from one job to another, exposing them to a wide variety of companies, industries and projects. Over time, they can build up a considerable bank of experience and diverse skills which, in turn, allows them to charge higher rates.

  • Build Your Network

    As you move between contracts, you will have the chance to build relationships across many different organisations. Over time, you will find that you have developed a large network that may be able to help you find further contract work, or open the door to permanent roles.

  • Earn More Money

    Contractors are usually paid more for their work than their permanent equivalents. As contractors are typically hired for short periods of time, they can charge more. What’s more, their rates can rise even further when skills are in short supply.

  • Claim Tax Relief

    As a contractor, you can avail of tax relief on legitimate business expenses such as mobile phone and internet costs, postage, stationery and more. To learn more about this, you will need to contact your accountants.

What Are the Main Differences Between Employees and Contractors?

  • Contractors
  • Agree to a ‘contract of service’
  • Works independently of the organisation
  • Invoices the client for hours/days worked and
  • Responsible for ensuring all necessary taxes are paid to the Revenue Commissioners
  • Receives a higher rate of pay that is often inclusive of any holiday or sick day entitlements.
  • Often hired to work on an individual project
  • Class A or Class S PRSI Social Welfare Contributions
  • Employees
  • Agree to a ‘contract of employment’
  • Employed by the organisation
  • Receives a monthly/weekly paycheck
  • Employer handles all necessary tax deductions before transferring net pay
  • Receives typical employee benefits
    (e.g. holiday pay, sick pay, bonus)
  • Employed on an ongoing basis
  • Class S PRSI Social Welfare Contributions

What is Daily Rate Contracting?

A contractor’s day/daily rate refers to the cost they charge for their services for a single day. Day rates are usually based on an eight-hour workday. The client will pay you for those days worked. It is often used in industries that hire contractors on a per-project basis or for seasonal work.

If you are interested in finding out what kind of rates you could expect to earn as a contractor, why not download Berkley’s 2022 Contracting Rate Reports?

What Happens When My Contract Finishes?

Towards the end of your placement, the client organisation may wish to extend your contract. Should you wish to proceed with this, our team of contracting experts will be on-hand to support you throughout this process. If you are not offered an extension or do not wish to extend your contract, then our team will work to ensure that you have another job lined up. We will let you know about any new opportunities that are relevant to your skills and guide you throughout the application process. 

How Does Berkley Help Contractors?

Berkley’s team of consultants are experts on all things contracting. They will guide you throughout your job search and application process, answering any questions you may have about working as a contractor. If you are interested in becoming a contractor and would like to learn more about making the move, watch our dedicated webinar “Contracting | Why Make the Switch?“. 

On securing a contracting position, you will gain access to Berkley’s Contractor Care programme. Our dedicated contractor manager will work to ensure that your experience is as seamless as possible. As part of our contractor care programme, you will receive: 

  • Full management of your contract administration
  • Advice on how to get set up as a daily rate contractor
  • Quarterly meetings with a dedicated point of contract
  • Expert guidance & full negotiation of any potential extensions and rate increases

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Embracing the Agile Tech Workforce

Many of today’s leading tech employers are turning to contingent workforce models to power their digital transformation efforts. To learn more about how this approach could enhance your business, read our guide to digital contracting for tech employers in 2021.

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