You're taking on a new employee - here's the information you'll need.
Employees
- Ask them to fill out an IR330 which includes their full name, IRD number and declared tax code.
- Are they enrolled in Kiwisaver? If so, they need to fill out the Kiwisaver form. If they would like to opt out of Kiwisaver, then they need to fill out the Kiwisaver Opt Out Form.
- Employment Agreement – every employee should sign an employment agreement. MBIE have a simple tool to help you build an Employment Agreement here.
- Leave entitlement – the minimum entitlement is 4 weeks of annual leave, and 5 days of sick leave. Get more detailed information about other leave entitlements here.
- Are your employees casual or permanent? Casual employees’ holiday pay is included in each pay. You can read more on the difference between casual and permanent here.
- Minimum wage is $18.90 per hour (as of 1 April 2020)
Processing their pay
We use the below payroll software/methods for processing wages and payday filing:
- Crystal Payroll – automatically payday files with IRD when payslips are approved.
- Xero Payroll – automatically payday files with IRD when payruns are posted.
- File manually with IR Online – Logging into MyIR and filing on screen in the Payroll account (must be done within 2 days of payment date).
It’s up to you whether you would like to process the wages yourself using Crystal or Xero, or whether you’d like us to do them for you and tell you how much to pay your staff each payday (we do not process the actual payments for you).
Payday Filing is required within 2 days of the wage payment, but the due date for payment of wages tax (PAYE) is on the 20th of the following month.
