Important information for recognised seasonal employers (RSEs) in the horticulture/viticulture industry
Further to the email dated 28 April 2008, circulated by Horticulture New Zealand Ltd, please note the following new procedures for RSEs and their workers.
2007-2008 tax year
Workers wanting to claim a refund for last year (the year ended 31 March 2008) must file an IR3 tax return. If they don't have an IR3, you can download one or call INFOexpress on 0800 257 773.
You need to:
- fill out page 1
- write "RSE taxpayer" clearly at the top of the page 1 - note that part year returns can take up to 12 weeks to process, so if the returns are clearly marked "RSE taxpayer" they will be given priority
- notify us of the worker's arrival and departure dates (at Box 39) on page 6
- ask the worker to sign Box 40 on page 6
- mail the IR3 in to us at the following address:
Inland Revenue
PO Box 39090
Wellington Mail Centre
Lower Hutt 5045
We'll do the rest, including calculating any refund owing.
We recommend getting the refund direct credited to the worker's bank account. Please make sure the account number appears in Box 8 on page 1 of the return, and attach evidence that the number is correct (eg a deposit slip).
If the refund is to be posted by cheque, leave Box 8 blank, and write the worker's overseas address in Box 3.
2008-2009 tax year
If you hire an RSE worker this year (the year ended 31 March 2009), tax them at the flat rate of 20.4 cents in the dollar (made up of 19 cents PAYE plus 1.4 cents ACC earner premium deductions). This is a "special tax code" (STC) - lower than the standard rate - we've introduced specially for RSE workers.
To simplify requirements, workers don't need to complete an application for the special tax code. Please note, however, only RSE workers qualify for this special rate.
If you deduct tax at the above rate, the worker will "break even" when it is time for them to leave New Zealand. Please note that this means that RSE workers will not be required to file a tax return or be entitled to a refund for the 2008-2009 income year.
Please record your deductions in your employer monthly schedule (EMS) as normal, and show your worker is on the special tax code by putting "STC" in the tax code box.
Do you need more information?
Please call us on 0800 227 774. Thank you for helping ensure RSE workers don't miss out on their entitlements.
Date published: 30 Apr 2008
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