As we move to the start of a new season, it is timely to review that your payroll documents and processes are current and correct.
Please take a few minutes to cast your eyes over the check points below.
To make it easy for you, we’ve made a short-list of some things to consider, including links to the latest IRD forms & some industry articles.
Reminder – of the upcoming Public Holidays
· Kings Birthday Monday 3rd June
· Matariki Friday 28th June.
Documents & Forms
Employment Agreements
A 5-minute read from DairyNZ to expand your understanding of Employment Agreements. Read the article here.
Need to purchase an Employment Agreement? Visit the Federated Farmers Store by clicking here.
Are my IRD forms current for new employees or changes for existing employees?
IR330 Tax Code Deduction (IR330 link here)
KiwiSaver deduction form (KS2 link here)
Minimum Wage
Am I meeting the Minimum Wage Requirements?
The hourly minimum wage rate increased to $23.15 effective 1st of April 2024.
Salaries cannot be averaged over a season; employees must be paid for all hours worked within each pay period.
EXAMPLE
An employee receiving a salary package of $65,000 including accommodation must be paid EXTRA for any hours worked in excess of 108 hours in any given fortnight.
Calculation: $65,000 / 26 fortnights = $2,500 / $23.15 = 108 hours
Helpful tip – be particularly mindful of hours worked during the busy season!
Are you paying your employees for every hour worked in a pay period? Find out more information here.
Accommodation Allowances
On-farm Accommodation
Another 5-minute read from DairyNZ regarding on-farm accommodation, can be found here
Market Value for rent
You are required to charge a ‘Market Value’ for on-farm accommodation provided.
Should you require assistance with the value of this, please contact your Accountant.
The Accommodation Portion of your employees salary may be EXEMPT from the KiwiSaver calculations – what does this mean?
On the value of the accommodation provided –
· Employer: No KiwiSaver contribution paid to the employee.
· Employee: No KiwiSaver Employer Contribution or Employee Deductions
Helpful Tip: The treatment of this must be reflected in your employment agreement and understood by both parties.
If an employee’s accommodation is EXEMPT from KiwiSaver, you need to contact IRD.
Use your myIR account to send a message advising the value of the employee’s accommodation allowance that is not subject to KiwiSaver calculations. Need help with this? please call us.
Farming employees with Accommodation who are being paid by ACC
If your employee is being paid by ACC, ACC will not deduct the usual accommodation portion from the employee.
We encourage you to discuss with your employee and suggest you ask them to reimburse you for their accommodation from their ACC payment.
Timesheets – get on board!
Are your employees completing Timesheets?
Helpful Tip: You are required by law to keep time records for 7 years!
DairyNZ have this great 3-minute read about timesheet requirements! Article can be found here.
From the Payroll Team
As always, if you have any questions or need assistance with anything ‘Payroll’ please contact one of the team.
Carolyn Lawrence - Extension 837
carolyn.l@accounted4.co.nz
Anne Bland - Extension 831
anne.b@accounted4.co.nz
Kate Crookston - Extension 825
kate.c@accounted4.co.nz
General Payroll enquiries
payroll@accounted4.co.nz
