The Tool for business

The Tool for business helps you get all your small business tax issues sorted quickly and simply.

Becoming an employer

When you start employing staff, you must register with us as an employer. You must also decide whether your staff are employees or self-employed contractors as the tax treatment for each is different.

Employing staff

There are things you must do or check when a staff member starts or stops working for you, when your business changes or ceases or if you want to employ your spouse or any foreign workers.

Payroll

Employers must deduct PAYE, including tax on schedular payments (formerly withholding payments) from payments made to staff or contractors. Deductions may also be needed for student loan repayments, child support, Kiwisaver, or any benefits, bonuses or other allowances that you pay.

Keeping records

This section has information about which records of your PAYE deductions you need to keep, and for how long.

Filing returns and making payments

Filing and payment responsibilities for salary and wage deductions differ depending on your gross annual PAYE payments. Employers with gross annual PAYE of $100,000 or more must file their Employer monthly schedules (IR348/EMS) and Employer deductions (IR345/EDF) forms electronically using ir-File. This option is also available to employers with gross annual PAYE of less than $100,000.

Employers with gross annual PAYE of less than $500,000 must file an Employer monthly schedule (IR348) and Employer deductions (IR345) form, and make payments to us once a month.

Employers with gross annual PAYE of $500,000 or more must file an Employer monthly schedule (IR348) once a month and file Employer deduction (IR345) forms and make payments to us twice a month.

Any employer may use a PAYE intermediary.

Failing to meet your employer obligations

If you fail to meet any of your obligations as an employer you may be liable for penalties and interest.

Did you know?

Regular seminars and hands-on workshops are held in most regions on a variety of topics about business tax obligations including record keeping, expenses and filing returns. Find a free workshop near you. 

Date published: 16 Sep 2004

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