Employers: Avoid a post-holiday tax headache

Employers: Avoid a post-holiday tax headache.
17 November 2014

With summer just around the corner, Inland Revenue is reminding employers to get their tax right if taking on seasonal and casual workers.

Eleanor Young, Group Manager for Customer Services at Inland Revenue said businesses shouldn’t overlook their tax obligations as they gear up to cope with the Christmas and summer demand.

“People employed on a casual agreement play a vital role in the country’s economy over the holiday season and employers need to ensure they are prepared for taking on these new staff,” said Ms Young.

“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 there are a few points to be aware of when it comes to you tax obligations,” she said.

Employers of seasonal or casual workers need to make sure all new staff complete a Tax code declaration (IR330)form.

“All new employees choose the tax code that reflects their particular circumstances,” said Ms Young “and will need to 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 Inland Revenue by the due date each month.

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

“All employers should also keep employment records for all their casual and seasonal workers.

“Making sure all the required forms and information are provided to Inland Revenue when taking on a seasonal or casual worker this will save employers potential problems in the future,” she said.

More information and forms can be found at ird.govt.nz or by calling Inland Revenue on 0800 227 774.

ENDS

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