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Casual workers are serious tax business

Abdul Rafik

With summer now upon us and the holiday season just around the corner, many people will be away to discover or relax in different parts of the world or in New Zealand.

This is an extra busy time for many businesses and an extra helping hand or two may be needed. Inland Revenue Department (IRD) is reminding employers to get their tax right if taking on seasonal and casual workers.

Businesses should not overlook their tax obligations as they gear up to cope with the Christmas and summer demand.

Mandatory compliance

People employed on a casual agreement play a vital role in the country’s economy over the holiday season and employers should ensure that they are prepared for recruiting these new staff.

At this time of year, thousands of seasonal and casual workers are employed as fruit pickers, shearers or as casual workers in the entertainment and hospitality industry.

If you intend to employ seasonal or casual workers, you should be aware of your tax obligations and comply with the requisite procedures.

Employers of seasonal or casual workers must ensure that all new staff complete a Tax Code Declaration (IR330) Form.

PAYE remittance

All new employees choose the tax code that reflects their particular circumstances and must provide their IRD number. Employers must deduct the amount of tax (PAYE) that relates to each employee’s declared tax code and pay those deductions to IRD by the due date each month.

When a casual or seasonal worker starts or finishes work, the employer must show that the start and/or finish date for each worker on the relevant Employer Monthly Schedule (IR 348).

Employers should keep employment records for all their casual and seasonal workers.

Making sure that all the required forms and information are provided to IRD when employing seasonal or casual workers will save employers potential headaches and problems in the future.

If you fail to meet any of your obligations as an employer, you may be liable for penalties and interest.

More information can be obtained on 0800-227774. Forms can be downloaded from our website www.ird.govt.nz

Businesses should not overlook their tax obligations as they gear up to cope with the Christmas and summer demand.

Employers should also keep employment records for all their casual and seasonal workers.

 

Free Workshops

If you are in business, you may like to attend one of our free tax seminars or workshops held in various parts of the country. Please visit our website for details (www.ird.govt.nz).

Abdul Rafik is Inland Revenue’s Community Compliance Officer based in Auckland. He will answer your queries, which may be emailed to venkat@indiannewslink.co.nz

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