100% Claimable Exercise Programmes

IRD have teamed up with the Exercise Association of New Zealand with an initiative called SMEAEP: Stress Management Exercise Association Endorsed Programme. The idea behind the initiative is that exercise and lifestyle changes play a huge role in managing stress levels in the workplace. If you are an employer, there is no FBT adjustments on SMEAEP endorsed programmes which you provide to your emp... More

Topics: Claimable Expenses Accounting Business Employing Links

Posted 20/03/2017

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Mondayised Public Holidays - Employer's Guide

A change of law regarding ANZAC and Waitangi days now applies where if these fall on a weekend the following Monday will be a public holiday. Previously if these days were on a weekend and an employee didn't work then it was just like a normal weekend day. If these days fell on a weekday then a public holiday was observed. Here's a brief overview of how this now works for employers... Restrict... More

Topics: Employing Salary & Wages Guides

Posted 28/04/2015

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Is Paying Wages "Under the Table" Worth It?

It can be easy to fall into the trap of paying your staff cash "under the table" instead of putting them on the payroll, less paperwork, no holiday pay, KiwiSaver and so on.  However this will surely backfire for you when it comes to preparing your business and/or personal income tax return. These cash withdrawals from your business will be treated as personal drawings and therefore won't be... More

Topics: Record Keeping Employing PAYE Salary & Wages

Posted 4/02/2015

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Can I Pay my Spouse / Partner Wages from My Business?

If you trade as a company there is no problem in paying your spouse or partner wages through the payroll of your business - however if you trade as a sole trader or partnership (that doesn't have your spouse / partner as an owner) you will need Inland Revenue approval to do this. If you don't get approval Inland Revenue can disallow any wage payments from being a tax deduction for your business. ... More

Topics: Claimable Expenses Employing PAYE Salary & Wages

Posted 21/10/2014 – Updated 22/12/2014

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Claiming on Meetings at Cafes & Restaurants

Sometimes you might take employees, clients or prospective clients out for breakfast, lunch, dinner or a coffee and muffin to discuss work related matters and pay for it all. IRD allow you to claim 50% of these costs as an entertainment expense. If you are GST registered you can only claim 50% of the total cost for GST and also 50% for your annual accounts and income tax. As good record keeping p... More

Topics: Claimable Expenses Record Keeping Employing Entertainment

Posted 26/09/2014 – Updated 16/10/2014

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What is Better - Drawings or Wages?

Clients often ask which is the best way to pay themselves from their company - drawings or wages? Here is an explanation of the differences. Drawings Taking drawings from your business is not a tax deductible cost - you should be aware that you will need to put aside a bit of money for income tax as well. For example say you take $800 per week drawings you want to be saving at least an additiona... More

Topics: Employing PAYE Salary & Wages Drawings KiwiSaver

Posted 24/09/2014 – Updated 22/12/2014

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Paying Children Wages? Heads Up!

If you employ children in your business there's been some significant changes with regard to their taxation. Currently our understanding is as follows... From 1 April 2013 if your business employs school children you will need to do their wages through your payroll and deduct PAYE / income tax. This will apply to all businesses and school children employees. School children who do cash jobs li... More

Topics: Income Tax Business Employing Salary & Wages Guides

Posted 15/10/2012

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KiwiSaver and New Employees - Be Careful

Inland Revenue have reminded us that if an employer fails to properly opt-in/opt-out a new employee to/from KiwiSaver this could have consequences for the employer in the future. If the employee decides anytime later that they wanted to be in Kiwisaver from the start of employment, the Inland Revenue will bill the employer for the full period from the employee's start date at the 2% compulsory con... More

Topics: Employing Guides KiwiSaver

Posted 30/11/2009 – Updated 3/09/2014

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Do I Have To Pay Fringe Benefit Tax (FBT) On Gifts I Give To Staff?

General exemption - There is a $300 exemption per employee per quarter from paying FBT if you provide free (gifts and prizes), subsidised or discounted goods and services. However, if the value of the benefits for an employee goes over $300 for a quarter, the full value of the benefits is subject to FBT - the exemption is not deducted first. There is also an annual exemption if you make a gift on... More

Topics: Employing FBT Gifts

Posted 17/12/2008 – Updated 23/09/2014

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Can I Be An Employee Of My Own Company?

Yes your company can become an employer and employ you via the payroll. This means that each pay day PAYE is deducted from your wages and on the 20th of each month the PAYE get's paid to IRD. Your wages become a cost to your business. You need to keep a wage book/record of each person’s pay each week - software that does this very nicely is Ace Payroll and can be found at www.acepay.co.nz. W... More

Topics: Business Employing PAYE Guides Company

Posted 21/10/2008 – Updated 3/09/2014

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