Payroll – Tips for Managing the Ever Increasing Complexities

Payroll – one of the most important tasks in running a business, and let’s be real – it can be very intimidating! There is a tonne of information out there, legislations, minimum entitlements, Casuals vs Permanent vs Contractors, Kiwisaver, Tax Codes – this list goes on. We are going to share some of our top tips and tricks to help you feel confident in managing your payroll: Stay on top…  Read more

How do I know what ESCT rate to use?

Employer superannuation contribution tax (ESCT) is deducted from your employer contributions to your employees’ KiwiSaver or complying funds. Complying funds are superannuation schemes with similar rules to KiwiSaver. For example, members’ savings are locked in until they’re eligible for NZ Superannuation. You do not pay ESCT if your employee asks you to deduct money from their pay to put into a superannuation scheme. These are not employer contributions. There are…  Read more

Payroll – What you need to know about Jury Service

There is confusion around the rules on jury service and payment for employees called for jury.   We thought we would share your obligations as an employer on this. If one of your employees has been summoned for jury service, here’s what you need to know. Talk with your employee about: when they need to go to jury service how long the trial might last. This information may be contained in…  Read more

Payroll – Cashing up Annual Leave

Employees can ask to cash-up up to one week of their four weeks’ minimum entitlement to annual holidays each year. Employees can ask their employer to pay out in cash, up to one week of their four weeks’ minimum entitlement to annual holidays per year for each entitlement year. They can do this all at once, or can make multiple requests to cash-up until the entire one week is cashed…  Read more

Increase of Minimum Sick Leave Entitlement

The increase of the minimum sick leave entitlement from 5 days per year to 10 days per year will come into effect on 24th July 2021. What does this mean for you and your employees? For existing staff they will get the increase of entitlement on their next sick leave anniversary (not automatically on 24th July) For new staff they will get this on their 6 month anniversary The maximum…  Read more

Holiday’s Act Taskforce recommendations and what it means for payroll

Anyone with staff knows the frustrations that the complexities of the current Holidays Act legislation creates.  The Government set up a Taskforce to review the Holiday Act in May 2018, which was made up of employer, employee and government representatives. There was widespread non-compliance with the Holidays Act 2003 and it was generally accepted that this is due to issues with not only the legislation, but the implementing of the legislation…  Read more

Are You Doing Your Own Payroll? Here’s 3 Reasons Why You Should Stop

At face value, it can seem like a great idea. If you’re a small business owner with just a few employees, you probably think that hiring a payroll specialist is an expense that you can avoid.  You feel that you can handle it yourself and you have the best intentions to keep your staff paid right and on time. What could go wrong, right?  Well, quite a lot can go wrong as…  Read more

April 2021 Updates – What do you need to know?

Another end of Financial Year is looming up fast! And what a crazy year it has been. There are quite a few different updates that are due to rollout on 1st April, so we have summarized them here for you:   Minimum Wage Increase: From the 1st April 2021, the minimum wage hourly rates will increase to: Adult: $20.00 Starting out/training wage: $16.00   This will effect quite a lot…  Read more

Waitangi Day 2021 – What You Need To Know

This year, Waitangi Day falls on Saturday 6 February and is observed on that day or Monday 8 February. Here is what you need to know about rights for employees and obligations for employers. Mondayisation for Waitangi Day This year, Waitangi Day falls on a Saturday. This means the holiday is moved to the following Monday, which is Monday 8 February. Requirement to work on Waitangi Day If your employee…  Read more

Leave without pay

Sometimes, an employee doesn’t have enough leave available to take paid leave when time off work is required for what would normally be a work day. As am employer, you can agree to the time off and not pay them for this time. This is usually called Leave Without Pay or LWOP. Leave without pay doesn’t end an employee’s agreement or change it, however, did you know that leave without…  Read more

Jury Service – What do you need to know

Every year thousands of New Zealanders are called up to serve on a Jury, so if you have employees it is only a matter of time before one of them gets summoned for Jury Service. What should you do if this happens?   Talk to your employee Find out when they have been told to go for jury service and how long it may last. Discuss how it may affect…  Read more

Changes to paid parental leave from 1 July 2020

From 1 July 2020, the duration of parental leave payments will extend from 22 weeks to 26 weeks and the maximum weekly rate for eligible parents will increase from $585.80 to $606.46 gross. The minimum payment rate for self-employed parents increases from $177.00 to $189.00 gross per week, which is equal to 10 hours of the current adult minimum wage. The number of ‘Keeping in Touch’ days will also increase…  Read more

Five things you need to know before Christmas

As Christmas draws closer, here’s a quick list of five things as an employer you should be aware of when it comes to minimum legal employment rights. 1. Is closing down a workplace at Christmas legal? Yes. An Employer may close down a workplace if the processed is managed lawfully. Employees must be given at least 14 days’ notice of the closedown. An employer may have a regular closedown once…  Read more

Taking on staff? What do you need to know?

So you’re ready to hire your first employee, congratulations! You’ve had subbies working for you for years, so what’s the big deal? Most tradies will one day find themselves in the position that they’ve got a good crew of guys who do an awesome job and they want to keep them happy. This awesome crew might still subcontract back to the head contractor (the business owner), which is always a…  Read more

Wages Increase 2019

The minimum adult wage is set to increase by $1.20 per hour in April. Are you prepared?

Making changes to Employment Agreements

From time to time, the terms under which you have employed a team member originally may change. This could be as simple as giving them a payrise, or slightly more complicated such as changing from a permanent full time agreement to a casual basis. It’s important to document each change in writing to ensure you, and your employee, remain on the same page and understand the expectations of the employment…  Read more

Domestic Violence – Victims Protection Bill becomes law

The Domestic Violence – Victims Protection Bill has passed its third reading in Parliament. It aims to enhance legal protections in the workplace for people affected by domestic violence. The changes will come into effect on 1 April 2019. The new law entitles employees affected by domestic violence to up to 10 days of paid domestic violence leave per year, in order to deal with the effects of domestic violence.…  Read more

Company Fined over Serious Employment Breach

Auckland builders Juno Homes and EXP fined for serious employment breach Two Auckland building companies have been fined $7,500 for employment law breaches, as they failed to keep employment records or ensure workers were paid correct holiday pay. The firms then also failed to comply with a notice to fix issues that the Labour Inspectorate sent them in March 2017. Good employment relationships start with a good recruitment process so…  Read more

Calculating Holiday Pay – Don’t Get Caught Out

Bunnings NZ have announced it will back pay staff $11 million as part of its efforts to comply with the Holidays Act 2003. Paying employees annual leave (or holiday pay) can sometimes be a confusing business, especially when the Holiday Act can be challenging to even understand in the first place. There’s been a number of businesses recently in the media who have been subject to a 2016 government report…  Read more

Are you failing to make or pay deductions?

Employers must make deductions for PAYE, ESCT (employer superannuation contribution tax) formerly SSCWT, student loan repayments, child support and KiwiSaver contributions when required, from any payments made to employees. Failure to do this is a serious offence and can result in penalties and fines being imposed. Anyone who knowingly fails to make deductions can be fined up to $25,000 for a first offence and $50,000 for subsequent offences. Shortfall penalties…  Read more

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