1. All employers' compulsory KiwiSaver contributions are taxed.
Employers need to calculate Employer Superannuation Contribution Tax (ESCT) — on any KiwiSaver contributions. Read more
2. What is the standard GST rate?
The standard GST rate is 15%, but some goods and services are charged at 0%. These are typically goods and services from New Zealand sold overseas. Some supplies may be exempt from GST, most commonly renting a dwelling as a private home. Read more
3. If my business has an annual turnover of less than $60,000
You must register for GST as soon as you think you’ll earn more than $60,000 in a 12 month-period. If you choose to register when you earn less than that, you must charge GST on sales, and you can claim GST on purchases. Read more
4. What date does Inland Revenue set as the standard year-end for businesses?
Businesses can apply to Inland Revenue to change that date, but they need to have a very good case and meet certain conditions. Read more
5. What does ESCT stand for?
ESCT is the tax the employer pays on their compulsory contributions to superannuation schemes, eg KiwiSaver.
6. Who is responsible for sending the tax code declaration form (IR330) to Inland Revenue?
All employees must complete an IR330 form and return it to their new employer before they start work. The employer keeps the form for their wage records. Read more
7. At what point in time does an employer calculate an employee’s PAYE (pay as you earn) tax?
Employers must deduct PAYE and related deductions for each employee on their behalf, paying their PAYE to Inland Revenue. Read more
8. What must an employer do if a new employee doesn’t want to join KiwiSaver?
The employee can tell Inland Revenue directly. But it’s a good idea for employers to know what they must do if an employee gives the form directly to the company. Read more
9. Inland Revenue asks your company to pay child support from one of your employees’ wages. The employee asks to stop the payments. What should the company do?
By law, employers must deduct child support payments from wages when Inland Revenue tells them to and keep doing it until Inland Revenue tells them to stop. Read more
10. If Inland Revenue gives your company a new tax code for an employee, can the employee ask you to keep using the original code?
Inland Revenue can tell an employer to change a tax code. But an employee may know their situation better and insist on their employer using the original code by submitting an IR330 form. Read more
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