Newsletter
Lay Dodd News - March 2023
23 March 2023
2023 YEAR END CHECKLIST
is available from our website at:
https://laydodd.co.nz/download...
Please contact us if you would like us to post your checklist.
The checklist is designed to help us limit the questions we must ask you later.
Once your records are gathered, please send to our office, or email us.
Cost of Living Payment
The receipt of the Cost-of-Living payment was dependent on the 2022 income tax return being filed by
31 March 2023. Once the 2022 income tax return is filed, the IRD will automatically make the payment.
The Inland Revenue Department (IRD) has now extended this date to 31 May 2023 in response to recent weather events.
Reimbursing Payments to Employees
The IRD has updated the tax treatment of reimbursing payments made to employees that work from home and/or payments made for an employee’s use of their personal telecommunications tools and/or plans in their employment.
It applies when:
- Employer makes payment to employee
- Payment relates to expenditure or loss incurred by employee
- Incurred by employee in deriving employment income and not private or capital nature
- Home-based work must be more than minor
- Employee works from home (no telecommunication tool/usage plan)
- The allowance is $20 per week
- Employee works from home and uses own telecommunication tools/usage plan)
- The allowance is $27 per week
If you are looking at making such payments, please contact us and we can work through the best options for you.
COVID-19 and Tax Payments
If you have been impacted by COVID-19 and not able to meet tax obligations, the link below covers remission for use of money interest and penalties and the process to set up instalment arrangements.
Please contact us if you need assistance to talk through the best options.
For more information, go to:
https://www.ird.govt.nz/update...
The minimum wage is increasing on 1 April 2023
The details of the change are:
- The adult minimum wage will increase from $21.20 to $22.70 per hour. They apply to employees aged 16 years or over.
- The minimum wage for starting out and training will increase from $16.96 to $18.16 per hour
- All rates are before tax and any lawful deductions for example PAYE tax, student loan repayment, child support.
Please make sure your payroll software has been updated for the changes.
For more information, go to:
https://www.employment.govt.nz...
Changes to Benefits and Payments from 1 April 2023
Pensioners, students, and everyone on main benefits will see their payments from the Government rise by 7.22% in line with inflation from 1 April 2023.
For more information, go to:
https://www.workandincome.govt...
Terminal Tax Instalments for the 2022 Year Reminder
2022 Terminal tax is due no later than Tuesday, 11 April 2023 being the next working day after Easter Monday. Emails or letters to applicable clients have been sent during March. If there is any difficulty in meeting the payments, please get in contact with us as soon as possible.
Disclaimer
The publication has been carefully prepared, but it is written in general terms only. The publication should not be relied upon to provide specific information without also obtaining professional advice after detailed examination of your particular situation.
