Covid-19 Wage Subsidy – Are you prepared for an audit?

While we are all planning our next steps as we rebuild our businesses, the Ministry of Social Development (MSD) have begun the mammoth task of auditing certain applications made under the wage subsidy scheme. This is an action that was signalled from very early on in the scheme. While the swift move into audit phase may seem harsh, the statistics that emerged regarding fraudulent claims on hardship grants after the…  Read more

Questions to ask as your small business recovers from COVID-19

  As small business owners look to the future post COVID-19, there are some important questions to ask. These questions will help you determine what changes you want to keep, whether your business model is still working for you, and if there are any additional changes you may want to make to keep your company operational through future economic disruptions.It’s not always fun to do this sort of investigation, but…  Read more

How to build value in your business

Beyond COVID-19 – How to build value in your business We’ve said it before and we’ll say it again – this has been an extremely difficult few months for all of us, but there is no better time to think seriously about your business. In this article, we have compiled a few tips to create value in your business. The key to building value in your business is to plan…  Read more

What level 2 might look like..

Prime Minister Jacinda Ardern has outlined what life will look under level 2, including details on retailing, hospitality, sport, education and travel, if Cabinet agrees to loosen lock down restrictions next week. No decision has been made to move to Level 2 just yet but the government is keen to do so sooner rather than later and it would be a phased approach. Businesses like retail outlets and hairdressers will…  Read more

Small Business Interest Free Loans to aid Recovery

The Government has announced a boost to cashflow support for small businesses to aid in their recovery from the affects of Covid19. The Small Business Cashflow Loan Scheme will provide assistance of up to $100,000 to firms employing 50 or fewer full time equivalent employees. The scheme is in the way of a loan from the government and will provide $10,000 to every firm and $1800 per equivalent full time…  Read more

Level 3 – what does that look like?

The Government has announced that New Zealand can safely move out of Alert Level 4 lockdown at 11.59pm on Monday 27 April. We are still in Alert Level 4 until then. We will hold at Alert Level 3 for two weeks, before Cabinet reviews how we are tracking and makes further decisions on 11 May. The shift to Level 3 is not hugely different for a lot of people, but…  Read more

COVID-19

Economic Response Package Finance Minister Grant Robertson today outlined a $12.1 billion package to support New Zealanders and their jobs from the global impact of COVID-19. The global economic impact of COVID-19 on New Zealand’s economy is going to be significant, so we are acting now to soften that impact. The $12.1 billion package is worth 4% of GDP, a larger plan than that implemented in response to the Global…  Read more

Plan – Do Not Panic

Panic creates panic. Mass hysteria will not make it any better, so we all need to remain calm in the face of this virus and do our bit to ensure it is contained. If your business financials feel volatile, you’re not alone. We end up in the way we show up. Choose to be proactive and lead with a clear plan & communication. Here are some other ways business owners…  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

Changes to Paying Credit with Credit

Recently, new legislation has been passed to add more levels of consumer protection around the credit industry. One of those changes removes the ability to pay for credit with credit. This means that finance companies, such as Fee Funders which Ontrack Bookkeeping Ltd uses to offer customers an alternative solution to paying off amounts, can no longer take payment by Credit Card. Does this affect you or the business you’re…  Read more

GST On Low-Value Imported Goods

From 1 December 2019, overseas businesses selling low-value goods to consumers in NZ may need to register for, collect and return Goods and Services Tax (GST) of 15%. Low-value goods are those valued at NZ$1,000 or less (exclusive of GST). Examples include books, clothing, cosmetics, shoes, sporting equipment and electronic items. NZ Customs will continue to tax goods sold for more than NZ$1,000 at the border as they come into…  Read more

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

New IR mileage rates

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

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

myIR online services upgraded this week

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

Payday reporting

The payroll landscape is constantly changing, and not just for businesses and staff, but those of us who have responsibility of ensuring employees pay is correct.  The Payday Reporting legislation is currently before parliament and proposes to change the way payroll information is reported to the IR. Currently reporting is done on a monthly basis by way of filing our PAYE returns (EMS and EDF schedules along with Kiwisaver forms).…  Read more

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