Farm Accounting NZ Vol 104 & 105 - Busing Russell
All employees, including those of school age, are required to complete an IR330 and have PAYE deducted from their wages.
Employees on temporary contracts of less than 28 days are not required to be enrolled in KiwiSaver. If they are already members and wish to have KiwiSaver deductions made, they must provide their employer with a KiwiSaver deduction form (KS2).
Where employees receive holiday pay rather than annual leave, the holiday pay must be calculated at a rate of at least 8%.
All employees (including casuals) are required by the Employment Relations Act to have a written employment contract. The contract should state hours, place of work and any other agreed terms and conditions.
Failure by a taxpayer to follow the correct processes when employing staff leaves them open to action from the Inland Revenue and the Ministry of Business, Innovation and Employment. Both groups have recently been looking into the dairy industry and have found widespread non compliance. There have been a number of high-profile prosecutions with significant fines and penalties being handed down.