HOLIDAY PAYMENTS AND STATUTORY HOLIDAY OBLIGATIONS - This season Boxing Day and 2nd January fall on a Saturday meaning ‘Relevant Daily Pay’ rules apply i.e. the calculation used for public and alternative holiday payments. For these public holidays consider the following:

• If your staff don't normally work a Saturday the statutory day is moved to the following Monday
• If your staff normally work on the Saturday they need to be paid time and a half and allocated a day in lieu for that day
• You are only required to pay a maximum of four statutory days during the Christmas Holiday Period

For expanded assistance calculating wages and salaries please contact our payroll expert brenda.smith@aingertomlin.co.nz or phone 03 343 0046.
 

TO BONUS OR NOT TO BONUS – Many employment contracts today include allowance for an annual bonus. Once it was customary for a bonus to be tied to company performance and profitability, but now is often in recognition of key task achievement. Whether you regard a bonus as a motivator, a reward for loyalty or a simple thank you, it is important to think through the process well ahead of time. Consider the following:

• Link bonuses to team performance for motivational effect
• Reward individuals only against specific and measurable goals
• Even small bonuses are appreciated in the current economy
• Bonus alternatives like ‘a day off’ can also be seen as a valuable reward
• Discretionary bonuses are not part of gross earnings or holiday pay calculations but contractual bonuses are
• If a Christmas bonus is a usual practice but is not possible this year, inform staff early December to avoid resentment

If you are not in favour of a bonus regime, it is still an important time to express general appreciation for staff efforts. 

ENTERTAINMENT TAX – At Christmas time especially, there are a raft of considerations regarding entertainment expenditure and the levels of tax deductibility.Our ‘Entertainment Tax Facts’ sheet includes a useful table outlining common entertainment expense items, relevant deductions plus items subject to Fringe Benefit Tax.

A pdf version can be downloaded from the resources section on our website CLICK HERE  or if you prefer a copy of our printed version please send a request to email@aingertomlin.co.nz 
 

EMPLOYMENT AGREEMENTS REVIEW – The New Year is the ideal time to review employment agreements and to make sure all employees have signed one. Under the current law there is potential for both parties to be penalised by up to $10,000 if valid employment agreements are not in place.

If you would appreciate advice and support with developing employment agreements and remuneration reviews please contact our office to arrange an appointment.
 

INLAND REVENUE NEWS - In September Inland Revenue ceased sending out their printed Payroll News and GST News, and replaced it with the first issue of a monthly on-line tax news service - the Business Tax Update. This is a useful and easy to read document updating all tax information.

You can subscribe to receive an email notification when each issue is published on their website or download a pdf version. The page also contains links to previous updates CLICK HERE 

The November document covers: payroll giving, direct credit refunds, relocation payments and overtime meal and sustenance allowances, KiwiSaver contact centre hours, tax pooling, making tax payments on time, associated persons, volunteer payments, GST legislation changes, and compulsory employer contributions.

TAX DUE DATE CALENDAR 2009–2010 - Download this handy pdf calendar CLICK HERE

CHRISTMAS BREAK – During our break from 4pm on Wednesday December 23 through to Monday January 18, the office will function with a reduced team. If anything urgent arises please call 03 343 0046 or call Mark O’Reilly on 021 222 4495.