Lay Dodd - Spring 2018

4 September 2018

PAYE filing is changing

Currently, your employees’ income information is reported to the IRD monthly.

In 2018, the Government passed legislation that will save businesses time and make sure we receive more timely and accurate information for calculating customers’ tax and entitlements.

Employers and payroll intermediaries will be required to submit employment information every payday instead of monthly.

Payday Filing – key points

Payday filing is voluntary from 1 April 2018 and mandatory from 1 April 2019. It’s a good idea to start thinking about how you will make payday filing part of your payroll processes before this becomes a requirement.
PAYE payment dates and methods of payment remain the same – all that is changing is how often you provide your employment information.

Filing Options

Increasingly employers are using software to manage their tax filing. Research shows that using technology such as software in business is reducing compliance costs. There are three different options for electronic payday filing – here’s how to get started:

Direct from software (if supported by your software provider). This service lets businesses file their payroll information without having to upload the file in myIR. You don’t need to do anything to elect to use payday filing. Call the IRD on 0800 377 772 to start using the following two options:

a. Upload myIR in the Payroll returns account (if supported by software provider) or

b. Onscreen in myIR in the Payroll returns account.

If you are filing electronically (either through software or myIR), you have to submit employment information within two working days of paying your staff, or within ten working days from 1 April 2019 if you are a paper filer. There is a twice-monthly filing option for those who submit their employment information on paper.

What to do next

Start thinking about how you’ll make payday filing part of your payroll processes before it becomes compulsory in April 2019.
Talk to your payroll software provider about when they will offer the software you need. The IRD are working with the software industry so that more providers will offer payday filing by the time it becomes compulsory.
If you use an in-house payroll system, make sure your IT team is aware of what’s changing in April 2019.

For more information go to www.ird.govt.nz/payday

DRIVERSNOTE – App for Phone

Split between business and private use Do you need a Log Book – well why not use an app called DriversNote. Simply install on your phone and dial up every time you use the car. The App monitors all trips and allocates business / personal use for you.

Go to www.driversnote.com/tracking for more information.

ADVICE FOR THE SELF-EMPLOYED AND CONTRACTORS

What to watch out for in contracts

When you’re contracting or self-employed, you are not covered by employment law – including government minimum standards. Carefully check your contracts before your sign. If you can, get a lawyer to help.

Never feel rushed to sign a contract – read and think about it properly

If you are not confident about signing a contract, e.g. because you don’t understand all the terms, get legal advice.

What to check

General Terms

What you are expected to do – tasks you will perform, what you will deliver. You may see the word “services”used to describe this section, e.g. “Services to be provided”.
Where you will provide your services, e.g. at home, another location
How much you will be paid, e.g. an hourly or daily rate, and when you need to invoice for your fees. This might be weekly, monthly or after you have completed certain projects or tasks.
What expenses or allowances you will be paid, e.g. will you be reimbursed if you use your own car or your own tools, will you be reimbursed for food and accommodation if you travel?
How many hours you will work per day/week/month – this could be a range, e.g. up to 25 hours per week – and when you will work them, e.g. on weekdays between 9am and 5pm.
How long the contract will last – also called its term – and whether it can be renewed.
Who your contact person will be
Whether either party has the right to terminate the contract.
How disputes will be resolved – when you are a contractor, you can’t raise a personal grievance if you and a client you work for have a disagreement.
Who will own any intellectual property that you may have developed as part of the contract.

Insurance or licences

If you need to have any insurance, e.g. professional indemnity.
Any licences you may need to do the work, e.g. full driver’s licence, fork lift truck licence.

Restrictions

Whether you can contract or work with the business’s clients and employees after you finish your contract – many contracts stop you from doing this for a specified time.
If you can sub-contract the services you are offering, e.g. by employing another person to help you – clients may be happy for you to do this with their consent.
If you share information about their products and services with people outside their business – confidentiality clauses usually say that you can’t.

5 REASONS YOU NEED A BUSINESS BLOG - RIGHT NOW

1. A business blog establishes you as an expert in your field

The more you talk about stuff that you know a lot about; the more people will pay attention to what you have to say.

2. A business blog can improve your search engine optimisation (SEO) ranking

If someone who lives in Christchurch needs some legal advice for whatever reason and you are a law firm based in Christchurch, you had better hope that when they Google ‘Christchurch lawyer’ your business will appear at the top of the search results. If it doesn’t, SEO could help you improve your rankings. Put simply, search engines reward websites for regularly posting unique content, using relevant keywords and answering the questions that online searchers ask by sending your website higher up the list of search results.

3. A business blog sets you apart from your competitors

If none of your competitors has a blog, now’s the perfect time to set one up yourself. A business blog not only lets you communicate with your current clients, it also puts you in front of new customers who might have no idea who you are.

4. A business blog sets you apart from your competitors

Customer communication is generally one-sided; you might send them an email that tells them about a new initiative or create an ad campaign that hopefully someone will read and remember. A business blog lets you talk to your customers in a friendlier, more casual way than many other kinds of communication. Turn on comments and you instantly encourage your audience to chat back.

5. A business blog sets you apart from your competitors

If you struggle to create engaging content to post on Twitbooklinkedagram, a blog that’s regularly updated has already done most of the hard work for you. Posting links to your latest blogs on your various social media accounts sends more traffic to your website, resulting in more brand recognition and leads.

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