ATTENTION all Farming Employers
Are you CASHING UP entitled Annual Holidays 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 Cashing out Annual Leave Application Form
- Tax it based on a lump sum basis https://www.ird.govt.nz/roles/employers/lump-sum-payments
Are my Employment Agreements up-to-date for all employees?
https://www.dairynz.co.nz/people/employer/starting-employment/employment-agreements/
https://www.fedfarm.org.nz/FFPublic/Store/StoreLayouts/Store_Home.aspx
Are my New Employee forms current? IR have recently updated many of their forms
Tax Deduction (IR330) see https://www.ird.govt.nz/tasks/declare-my-tax-code
KiwiSaver (KS2) see here https://www.kiwisaver.govt.nz/new/join/how-to/auto-enrol/ks-auto-enrol.html
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 $17.70 PER HOUR FOR ALL HOURS WORKED IN EACH PAY PERIOD. Wages cannot be averaged over a season.
Fortnightly Pay Example:
Gross Base Salary $1800.00 + Taxable Accommodation Allowance $400.00 = Gross Earnings $2200.00 divided by the Minimum Wage $17.70 = Maximum hours worked in any fortnightly pay period is 124.25 hours. Additional hours must be paid at the rate of at least $17.70
‘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 $17.70 per hour or their usual hourly rate
Is my Accommodation Allowance at Market Value?
https://www.ird.govt.nz/topics/income-tax/benefit-allowances/market-value-of-rental-accommodation
https://www.dairynz.co.nz/people/employer/starting-employment/accommodation/
Farming employees with Accommodation on ACC
If your employee goes on ACC – ACC does not deduct and reimburse you for their accommodation. We encourage you to discuss with your employee for them to reimburse you for their accommodation from their ACC payment.
Am I using Timesheets? This is a NOT NEGOTIABLE – get on board!
https://www.dairynz.co.nz/people/employer/rosters-pay-and-leave/timesheets/
Paysauce - a Payroll provider that's geared for the Farming Industry
PaySauce has developed a payroll specifically designed for the agricultural sector that reduces the time Employers spend paying staff. With the use of Smart Apps for iOS and Android phones, employees are able to electronically enter their timesheet hours which is then simply reviewed and approved by the Employer. PaySauce calculates wages, holiday pay, PAYE, KiwiSaver, minimum wage ‘top ups’ to keep labour inspectors happy, as well as taking care of PAYE filing and making the payments to staff and the IRD. Federated Farmers members get a $50 start-up credit!
Check out PaySauce https://www.paysauce.com/ and their easy to follow ‘How to Videos’ https://www.paysauce.com/how-to/
A4 Payroll Team
Anne Bland Extension 831 Email anne.b@accounted4.co.nz
Carolyn Lawrence Extension 837 Email carolyn.l@accounted4.co.nz
