All payments must be made on termination

Employees must be paid when they terminate (or in the next normal payrun) all wages, holiday pay or money outstanding as per the Wages Protection Act 1983. An Employer may not deduct any money without the employees consent .This  should be stated in the employees contract and signed by both parties.

In Lieu of Notice Payments

In Lieu of  Notice payments  can be paid to an employee if the employer requests the employee to leave immediately once notice has been given.  The number of weeks to be paid is specified in the employment contract which should have been signed by both parties. Conversely, the employer may make deductions from the employees […]

Student Loans – 10% bonus

Early repayments of $500 or more in any tax year off a student loan will earn a 10% bonus. In some cases it may be worth accepting the offer.  However, don’t overlook the time value of the money.

Redundancy Rebate

There is a special rebate for redundancy payments of 6 cents in the dollar. If you have to make any of your staff redundant, remind them they can complete form IR524, immediately, and may get a rebate of some tax, depending on the rate they pay and the total pay-out.

Tax Rates in New Zealand

The PAYE for primary employment is –  14.2 % on income up to $14,000, plus – 22.7% on income over $14,000 up to $48,000, plus – 34.7% on income over $48,000 up to $70,000, plus – 39.7% on income over $70,000 up to $106,473. Income over $106,473 is taxed at 38% as this is the […]

Will you get money back?

Inland Revenue are currently running a campaign to encourage tax payers to find out if they are entitled to a Tax Refund. There are a number of companies that can do this for you but they will charge a fee, whereas the IRD service is anonymous and FREE. To find out more click HERE

The role of an effective Payroll Bureau

Every now and then, you might ask yourself what things you can do to streamline some of the operations of your business. Whether this means cutting back on some of the things that you do personally or simply finding a job in the office that can be outsourced to cut costs and reduce the time […]