Of all of the benefits of IT contracting, a steady and reliable pay cheque is not at the top of the list. Work is not guaranteed and you always have to set cash aside for the slow periods. Even when you do have a gig, all independent contractors have a story about payments arriving late which can have a ripple effect on your life.
Especially if you're set-up as an incorporated business, you have a responsibility as the supplier of services to provide the proper requirements and paperwork to the client before they're obligated to make payment. There is no employer/employee relationship that mandates you receive your pay cheque on time.
Here are a few tips to help make sure your money gets to you when you need it:
Get Set-Up and Understand the Process as Soon as Possible
As soon as your new contract is signed, scour the documentation and ask your recruiter questions about how their payment process works. Every staffing agency has unique processes so don't assume it will be the same as your last gig. As soon as possible, be sure to send over all of the documentation they ask for, such as EFT information and business details. Submitting this at the last-may hold-up your first payment.
Don't just get your EFT information submitted on time, but ensure your approved timesheets arealways submitted on time throughout the entire contract. Know the deadlines for each period and set reminders in your calendar so you can complete the documentation as necessary. Since each client will have different requirements, some timesheets will need more detail and, therefore, a time commitment from you. Build that into your planning.
Follow-Up with Your Approver
This is the part of the process where you have less control but you can still take some ownership. When you notice your timesheet has not been approved and the deadlines are looming, give the approver a nudge. It may have gone to spam or there might be a discrepancy they've been meaning to discuss with you. Either way, when deadlines are missed and your pay doesn't arrive, pointing blame back to the approver won't bring your money to you any faster.
Pay Attention to the Detail on Your Invoices
Going back to point number one, understand what your staffing agency has to see on your invoice before making a payment. Perhaps its detailed timeframes or explanations of projects. If you're charging HST, the proper HST number must be included. It would suck not to receive timely payment simply because your invoice was missing a line that would have taken you a minute to include.
Ask Around About Your Agency
Let's back-up to before you even accept a placement. Did you reference check your new recruitment agency? Surely your network will have a few other contractors who have worked with this company in the past, so ask them those important questions, including information about their time entry process and reliability for payments. There are plenty of ways the time-entry, invoicing and payment process can go off the rails when you're on contract, but the five tips above are the most common preventative measures you can take. Throughout your placement, continue following-up and asking questions to ensure things are running smoothly, and hold the staffing agency accountable if they do miss payment at no fault of yours. Finally, take advantage of all the tools at your disposal. Accounting software, calendar apps, reminders, the client's timesheet system -- all of these tools combined will help you get your time submitted quickly and properly, and ultimately, paid on time.