If you decide to employ staff, you have to register as an employer. Some of your responsibilities in administering payroll can be both time-consuming and complicated. Employment legislation is growing increasingly complex, and will continue to do so with the introduction of “KiwiSaver”.
Your main responsibilities as an employer are:
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Ensure ALL employees have written Employment Agreements, even for Shareholder employees.
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You must deduct PAYE and SSWT (special superannuation withholding tax) from your employees’ wages, and pay the deductions to the IRD either once or twice a month, depending on the total amount of PAYE and SSWT deducted by the business.
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Complete an IR 345 or IR 346 and send it with your payment by the due date.
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Get new employees to fill in a Tax code declaration (IR 330). This tells you the tax code to use. If any employees don’t give you a completed IR330, you must deduct tax from their wages at a higher rate (called the no-declaration rate).
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Deduct child support from employees’ wages, if required.
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Deduct loan repayments from any student loan borrowers who work for you, if required.
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Complete an Employer monthly schedule (IR 348) with the details of each employee’s deductions
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Pay fringe benefit tax on any fringe benefits (perks) you give to your employees
Leech & Partners Ltd offers a comprehensive and confidential payroll service where we will take care of all of your payroll responsibilities to save you time and money. Whether you have many employees or only a handful, we can provide you with timely, relevant information to suit your business, including the following:
- Customised payslips
- Administration of PAYE, statutory sick pay, annual leave etc.
- IR-Filing to the Inland Revenue Department
- Administration of incentive schemes, bonuses and termination payments
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