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Payroll Update

May 27, 2025

Farming Employers Update

As we approach the start of a new season, it’s a great time to check that your payroll documents and processes are up-to-date and in good shape.
Take a moment to review the key points below, with handy links to the latest IRD forms and industry resources.

Upcoming Public Holidays:

King’s Birthday: Monday, 2nd June
Matariki: Friday, 20th June

Documents & Forms

Employment Agreements
Understanding your employment agreements is crucial. Here’s a quick 5-minute read from DairyNZ to help expand your knowledge:
Employment Agreements – DairyNZ

Need to purchase an Employment Agreement?
Get one here

IRD Forms for New Employees or Changes to Existing Employees:

Minimum Wage

Are You Meeting Minimum Wage Requirements?
As of 1st April 2025, the minimum wage increased to $23.50 per hour.

A quick reminder: salaries can’t be averaged over a season—employees must be paid for all hours worked in each pay period.

Example:
If an employee is on a $65,000 salary (including accommodation), they must be paid extra for any hours worked beyond 106 hours in a fortnight.
Calculation:
$65,000 / 26 fortnights = $2,500 / $23.50 = 106 hours maximum each fortnight

Tip: Pay special attention to hours worked during the busy season!

Want more details? Check out the full info Here

Accommodation Allowances

On-Farm Accommodation
Another helpful 5-minute read from DairyNZ:
On-Farm Accommodation – DairyNZ

Market Value for Rent:
Remember, you must charge the market value for any on-farm accommodation provided. If you’re unsure of the value, don’t hesitate to contact your accountant.

KiwiSaver and Accommodation:
The accommodation portion of an employee’s salary may be EXEMPT from KiwiSaver contributions. Here’s what this means:

Employer: No KiwiSaver contribution paid on accommodation value
Employee: No KiwiSaver employer contribution or deductions

Make sure this is clearly stated in your employment agreement and understood by both parties. If value of the accommodation is exempt from KiwiSaver, notify the IRD through your myIR account.

Timesheets – Are You Keeping Records?

Are your employees submitting timesheets?
A friendly reminder that you’re required by law to keep time records for a minimum of 7 years!

DairyNZ has a helpful 3-minute read to guide you:

Dairy NZ - Timesheets

In Conclusion

As we gear up for the new season, staying on top of employment compliance and payroll details is essential for a smooth and successful operation. By ensuring your documents, forms, and wage rates are up-to-date, you can focus on what matters most, running your farm efficiently and supporting your team.

If you have any questions or need assistance, don't hesitate to reach out. We're here to help!

Wishing you a productive and smooth start to the season ahead.