Payroll Update - Attention Farming Employers

May 26, 2023

Upcoming Public Holiday’s : Kings Birthday and Matariki

Kings Birthday Monday 5th June and Matariki Friday 14th July.

https://www.employment.govt.nz/leave-and-holidays/public-holidays/public-holidays-and-anniversary-dates/

ATTENTION: Farming Employers

Are my Employment Agreements up to date for all employees?

https://www.dairynz.co.nz/people/recruitment-and-onboarding/employment-agreements/

https://www.fedfarm.org.nz/FFPublic/Store/StoreLayouts/Store_Home.aspx

Are my New Employee forms current?

Tax Deduction (IR330)

https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir300---ir399/ir330/ir330-2022.pdf?modified=20220728214819&modified=20220728214819

KiwiSaver (KS2)

https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir1---ir99/ks2/ks2-09-2020.pdf?modified=20201004213520

Am I meeting the Minimum Wage Requirements?
Are you paying your employees for every hour worked in a pay period?

https://www.employment.govt.nz/hours-and-wages/pay/minimum-wage/agricultural-industry/

All employees MUST BE PAID AT LEAST THE MINIMUM WAGE OF $22.70 PER HOUR FOR ALL HOURS WORKED IN EACH PAY PERIOD. Wages cannot be averaged over a season.

‘Top up’ Hours

If your employee exceeds their maximum hours in any pay period, they must be paid any extra hours at either the Minimum Wage $22.70 per hour or their usual hourly rate

Are you CASHING UP entitled Annual Leave for your employees? https://www.employment.govt.nz/leave-and-holidays/annual-holidays/cashing-up-annual-holidays/

REMEMBER:

- Get the request in writing from your employee https://www.accounted4.co.nz/forms/

- Tax it based on a lump sum basis https://www.ird.govt.nz/employing-staff/payday-filing/non-standard-filing-of-employment-information/lump-sum-payments

Are your employees’ Accommodation Allowances at Market Value?

https://www.dairynz.co.nz/people/recruitment-and-onboarding/farm-accommodation/

Taxable Accommodation Allowances – EXEMPT from KiwiSaver calculations

Unless your employment agreements state otherwise, Taxable Accommodation Allowances are exempt from KiwiSaver Calculations. If this is the case for any new employee’s, and annually for existing employees, send a message via your myIR login to advise the value of an employee’s gross earnings that are NOT subject to KiwiSaver calculations to avoid getting IR mail stating you have under-calculated KiwiSaver amounts. Any questions, please call us.

https://www.ird.govt.nz/kiwisaver/kiwisaver-employers/contributions-and-deductions/gross-pay-for-kiwisaver-and-complying-funds

Farming employees with Accommodation who are being paid by ACC

If your employee goes on ACC, ACC does not deduct and reimburse you for an employee’s accommodation. We encourage you to discuss with your employee and suggest you ask them to reimburse you for their accommodation from their ACC payment.