Payments made to contractors for certain activities are called schedular payments1. Schedular payment means a payment of a class set out in schedule 4 of the Income Tax Act 2007. Section RD 8 deals with Scheduler payments.2
Tax is needed to be deducted from scheduler payments1. Page three of the Tax rate notification for contractors (IR330C) form has a list of schedular payment activities.3
Contractors can be an individual, partnership, trust or company and they can be resident or non resident tax payers.1
Self-employment includes contracting, working as a sole trader and small business owners4.
1.https://www.ird.govt.nz/income-tax/withholding-taxes/schedular-payments
2.https://www.legislation.govt.nz/act/public/2007/0097/latest/DLM1519955.html#DLM1519955