How do I choose a tax ID number for an employee?
Employers cannot select a tax ID number on behalf of an employee. Before an employee can pay their salary for the first time, you need to have the employee fill out and sign an IR330 tax ID return. According to the instructions on the form, the employee will choose the appropriate tax ID number on their own.
When are employees entitled to sick leave?
Under the current labour law, the employee is entitled to 5 days of sick leave if he or she has worked for the same employer for six consecutive months.
Is there still a 90-day probationary period for hiring new employees now?
As of May 6, 2019, the 90-day probationary period clause is only available to employers with fewer or fewer employees than 19 and the new employee has not previously worked for the company (e.g., a returning employee). The probationary period must be written into the terms of the employment agreement before the employee starts working, and there must be a valid notice period in the employment agreement. Additional specific conditions can be found on the Employment New Zealand website.
Does Payroll require an employee's date of birth?
It is required if it is used software, and it is not required for the time being if it is filed directly on the IRD website.
How are temporary employees paid for public holidays?
Since temporary employees don't have a set number of hours, many employers don't know how to pay them for public holidays. According to the New Zealand Ministry of Labour, employers first need to determine whether a public holiday is a casual employee's usual working day. If so, the employer will need to use the average daily wage, which is the employee's total earnings over the past 52 weeks to calculate the average daily wage. In addition, if an employee works on a public holiday, they will receive 1.5 times their average daily wage.
Do I need to pay PAYE to the compensation paid to the employee for the company's bankruptcy?
Under normal circumstances, if there is a clause in the employment contract that compensates the employee, it is necessary to compensate the employee according to what is written in the contract, which is the same as the salary, and it is necessary to pay PAYE.
Are Fixed-term employees and Causal employees paid on public holidays?
Fixed-term employees have the same entitlement to public holidays as regular full-time and part-time employees, and are paid at the rate of 1. 5 times the normal wage payment. Causal employees are generally not paid if they do not work on public holidays, because their working hours are not fixed, so they will pay 8% of the holiday pay when they are paid on a regular basis.
Can annual leave be cashed?
Employees can request up to one week of their four-year annual leave each year, either in multiple installments or in a lump sum. Some employees take no or very little annual leave, so they negotiate with their employers to request that one week's annual leave be paid directly in the form of wages.
However, employers cannot:
Pressuring employees to cash in on their annual leave
It is paid in the form of increased wages
Make it a condition of employment to honor annual leave
Include a request to honor annual leave in the employment agreement, but the agreement can include a process for making the request
What happens to unused sick leave?
At the end of the 12-month period, any unused sick leave of the employee can be carried forward and accumulated to the following year. Under the Holidays Act 2003, sick leave can be accrued up to a maximum of 20 days, but the employer and employee can agree in the employment contract that sick leave can be accrued for more than 20 days. Unused sick leave cannot be honored and cannot be made as part of any final payment to the employee when they leave the company, unless it is specified in the employment contract.
How is annual leave paid?
Under normal circumstances, when an employee has worked for less than one year, the annual leave is accrued at 8%, and after one year of service, he or she will receive four weeks of leave. If an employee has worked for less than one year and wants to take paid annual leave, it depends on whether the employer allows the employee to take annual leave in advance, that is, whether the employment contract with the employer includes the annual leave in advance.
How is the Annual leave calculated when an employee receives a wage subsidy?
The calculation method is the same as usual, and it is calculated according to 8% of the salary before tax.
How do I give Holiday pay for a casual worker?
For casual workers, 8% of the Holiday pay can be counted at the same time as each paycheck, and the total amount of the salary and Holiday pay is used to calculate the PAYE.
What is the difference between a casual worker and a part-time worker in terms of PAYE and contract?
PAYE will not be affected, PAYE is calculated based on the employee's tax code, payment frequency, and payment amount, which can be calculated through the PAYE Calculator provided by IRD. However, casual workers are different from long-term part-time workers because of the uncertainty of their working hours, which usually pays 8% of the holiday pay. In the contract, there is a general difference between the two, because the working hours of the casual worker are not fixed, the general contract may not specify the fixed working hours, but the part-time worker generally has a fixed working time per week, which is generally indicated on the contract.
How to calculate PAYE when you give a bonus to an employee?
The lump sum bonus is calculated in the form of Lump sum payments, and the PAYE of the entire payment is calculated.
If an employee's regular salary is less than the wage subsidy, how should the subsidy be paid?
According to Work and Income's explanation of wage subsidies, if your employees' regular wages are less than the allowance, you must pay them their regular wages. The difference will be applied to pay the wages of other affected employees. If there are no other employees, the remaining wage subsidy should be repaid to the government. The employee's holiday pay is also calculated at 8% of the regular salary.
