Reworded from Waikato Agribusiness News
A recent article in the 'Waikato AgriBusiness News' highlighted the importance of following the rules regarding paying your kids who work on your farm.
Often farmers' kids help out with calving, docking lambs, relief milking and other general farm work. It's a great way for them to earn a little bit of pocket money, and they do learn some practical skills.
If you are going to employ your kids, there are some important rules that you must follow.
Firstly you must ensure that the wages paid are 'reasonable for the work undertaken'. The IRD can look into payments to make sure they are reasonable based on the nature and extent of the services provided. This can also include the knowledge and skill required to carry out the service.
PAYE must be deducted from any wages paid to the kids like any other employees. The PAYE needs to be loaded on to your EMS – employer monthly schedule and paid to the IRD along with any other employees' earnings.
Farmers also need to be mindful of their obligations under the Employment Relations Act and Health and Safety legislation.
These obligations include a written employment agreement, payment of the minimum wage (if the child is over 16 years of age), holiday pay and the various record keeping requirements.
So the long and short of it, if you are going to employ your kids on your farm you need to treat them like any other employee!
For further information please refer to:
http://www.scoop.co.nz/stories/BU1508/S00026/paying-your-children-to-work-on-the-farm.htm
Further resources can be located:
http://employment.govt.nz/er/minimumrights/index.asp
http://www.dairynz.co.nz/people/
Often farmers' kids help out with calving, docking lambs, relief milking and other general farm work. It's a great way for them to earn a little bit of pocket money, and they do learn some practical skills.
If you are going to employ your kids, there are some important rules that you must follow.
Firstly you must ensure that the wages paid are 'reasonable for the work undertaken'. The IRD can look into payments to make sure they are reasonable based on the nature and extent of the services provided. This can also include the knowledge and skill required to carry out the service.
PAYE must be deducted from any wages paid to the kids like any other employees. The PAYE needs to be loaded on to your EMS – employer monthly schedule and paid to the IRD along with any other employees' earnings.
Farmers also need to be mindful of their obligations under the Employment Relations Act and Health and Safety legislation.
These obligations include a written employment agreement, payment of the minimum wage (if the child is over 16 years of age), holiday pay and the various record keeping requirements.
So the long and short of it, if you are going to employ your kids on your farm you need to treat them like any other employee!
For further information please refer to:
http://www.scoop.co.nz/stories/BU1508/S00026/paying-your-children-to-work-on-the-farm.htm
Further resources can be located:
http://employment.govt.nz/er/minimumrights/index.asp
http://www.dairynz.co.nz/people/
