The ACC levies have been set by regulation for the 2019-20 and 2020-21 tax years. For both tax years the earners’ levy remains the same at $1.39 (GST-incl) per $100 liable earnings. The minimum liable earnings for self-employed workers increases from $32,760 to $34,320. The maximum liable earnings will increase for: self-employed people from $124,053 to $128,470 in the 2019-20 tax year, and to $130,911 in the 2020-21 tax year.… Read more
The minimum adult wage is set to increase by $1.20 per hour in April. Are you prepared?
FBT, or Fringe Benefit Tax, can be confusing at the best of times, especially if you are a small to medium business with a handful of employees. Recently we’ve had clients asking if they can pay for certain items and avoid paying PAYE for the employee, unfortunately this is not the case – the tax must be paid somewhere! Sometimes it’s about identifying the situation and ensuring the best solution… Read more
I’m making sales, woo hoo! Now what? We often are asked, “When should I register for GST?” It’s good to know that you don’t have to register for GST just because you start trading and selling goods and/or services. You do however have to register for GST if you carry out a taxable activity, and: Your turnover was $60,000 or more in the last 12 months or will be $60,000… Read more
With the ever increasing price of fuel, we’re excited to be able to offer our clients an increased level of discount on fuel purchases with an FnF Fuelcard! Far North Fuels are a leading fuel card provider supplying Mobil, Caltex and BP branded fuel cards for use at over 900 service stations and truck stops throughout New Zealand. FnF understands what it means to be in business and the importance… Read more
About 300,000 business customers were charged incorrect ACC levies since 2002. Here’s how you can find out if you’re one of them. If you’re unsure, give our office a call on 09 435 5595 and we can investigate for you also. Are you owed a refund? If you were in your first year of self-employment between 2002 and 2017, or paid provisional ACC levies after ceasing trading, ACC may owe… Read more
Accountants and Bookkeepers fall under the Anti-Money Laundering and Counter Finance Terrorism legislation as of 1 October 2018 which means more compliance activities are going to be required when agreeing to work together. The requirement is to verify identities of those we work with, so don’t be alarmed if the process of working with an organisation who falls under the Act (Accountants, Bookkeepers, Banks, Real Estate Agents, Lawyers etc) becomes a… Read more
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
From the desk of The Commissioner of Inland Revenue. The Commissioner has issued a new Operational Statement 18/01 – Commissioner’s statement on using a kilometre rate for business running of a motor vehicle. This updates and replaces the previous Operation Statement issued in May 2009. The new rules allow the choice between using the cost method (which is based on keeping records of actual costs incurred) or a kilometre rate… Read more
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
With the risk of scams increasing daily, having the best security in place over your data online is becoming increasingly important. Did you know that Xero has a feature to add another layer of security to your Xero account? Best of all, it’s free and easy to set up! About two-step Authentication Two-step authentication combines something you know – your email address and Xero password – with something you have –… Read more
Debt collection. Two words that can send shivers down the spine of most business owners, whether it’s the phone calls you get (and try not to) or the ones you have to make. Let’s face it, nobody wants to make those calls. You spent a lot of time building a relationship with your customer, they were keen and excited so you did the job, they were happy (or would hope they… Read more
It seems the speaking circuit is calling lately with invitations to speak at a few different events coming forward. I feel very honored to be asked and extremely nervous at the same time. Hearing stories of peoples business journey is always really interesting and hopefully I can inspire a few people along the way. I wrote a post on our journey in March. I have been invited to speak at… Read more
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
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
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
It pays to get those employment contracts right and ensure minimum contractual requirements are meet when hiring staff. From the Ministry of Business, Innovation & Employment 5 April 2018 A Christchurch business owner has been banned from hiring staff for three years after he was found to have intentionally and persistently breached employment law. The former owner of Christchurch bar and eatery, Watershed Bar and Restaurant, and restaurant, Sequoia 88, and the… Read more
Bookkeepers and business owners have been on pin cushions this last weekend with the IR being closed for the latest on the business transformation project. On 17 April, improved myIR online services went live, “making tax simpler for you”. The latest improvements are designed to make it easier to do business the Inland Revenue. But change can be hard right? The Inland Revenue have created some quick tour videos of the… Read more
Our journey started just over 15 years ago. I was a solo mum with 2 wee girls aged 8 and 5, one of who had some pretty big health challenges. I was working 20 hours a week for MFISH and doing the bookwork for a plumber as a second job. What started as an idea to be able to work from home and be present for my kids morphed into… Read more
Minimum Wage Increases as at 1st April. The minimum wage increases by 75c on 1 April 2018. The new rates are: Adult $16.50 per hour Starting out $13.20 per hour Training $13.20 per hour You and your staff can agree to any wage above the minimum rate. If your employment agreements are a few years old, you can use this as a chance to update them. Please note that it is… Read more