IRD PAPER FORMS – IR 345 and IR 348

The IRD are very good at wasting not only paper but postage as well.  Ezypay as your payroll provider electronically file your IR 345 and IR 348 on your behalf either bi monthly or monthly ( unless you have specifically requested as not to ) If you have been receiving paper copies of these forms […]

TAX BILLS AND REFUNDS

At the end of the tax year we are frequently asked why an employee has a tax bill ( never a refund !!) to pay.  Naturally they find this very frustrating and would rather pay more tax each pay period than be landed with a tax bill. Under New Zealand’s current tax system we operate on […]

Redundancy Tax Credits

The entitlement to a redundancy tax credit was due to expire on March 31, 2011 but it has been extended to September 30. 2011. If an employee is made redundant they are entitled to receive the redundancy tax credit of 6% for the first $60,000. ( i.e a maximum of $3,600.) To claim the rebate […]

Earthquake Tax Changes

After the September and March earthquakes some companies paid their employees an ex gratia payment to help them over this unsettling period.  Originally, the IRD deemed the payments were taxable but tax changes have been introduced to respectively fix this.  This applies to any payments made within 8 weeks of either earthquakes ( some conditions do apply) […]

Kiwis will work 123 days to pay their taxes.

Did you know the average Kiwi has to work 123 days to pay their taxes. Tuesday the 3rd of May is when we start working for ourselves and not for  the Government. We compare poorly against Australia who have a Tax Freedom Day of April 19th but are leaps ahead of  Norway with their Tax […]

Handling PAYE payments

We have been fielding a large number of calls lately and one common question seems to be how we handle PAYE payments as a number of bureaus are taking the Gross pay from their clients, hanging onto the money, and then paying the IRD when due. Our preference is that you, the client, handles the […]

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 […]