PrintNZ will run a series of seminars around the country to explain proposed changes to Employment Relations legislation.
Ruth Cobb, general manager PrintNZ, says it will publish details and dates by the end of the week. She says, “There are a number of far-reaching changes proposed to the legislation and it is important that everyone understands what it means and how it will impact businesses.”
From this week, small businesses have an opportunity to spread their provisional tax payments over 12 months – see further information below from IRD. Also, the minimum wage has risen by 75 cents to $16.50 per hour or $660 per week. The starting out wage and training wage at 80 per cent of the minimum wage moves to $13.20 per hour or $528 per week. The Employer KiwiSaver payment needs to be in addition to the minimum wage.
She adds that, from April this year, you can leave the calculation of provisional tax to approved accounting software with the new Accounting Income Method (AIM). Your software will use accounting information to work out how much provisional tax you have to pay every one or two months. It means you’ll be making smaller, more regular payments that more closely match your cash flow – so, if you’re not making a profit, you won’t pay anything.
AIM will offer its users other significant benefits such as automatic refunds of overpaid provisional tax throughout the year and no exposure to interest or penalties if you pay what your software tells you to on time. Accounting software providers MYOB, Reckon and Xero will have AIM-capable products from this April. You will see and hear lot more about AIM to help you understand the benefits of opting in.
Click here to watch a video, if your business has an annual turnover of under $5m and you want to find out if AIM is right for you https://www.youtube.com/watch?v=7EaXDJrR6oQ
Click here to find out more from the inland revenue department and click here to register to view a free webinar https://www.cchlearning.co.nz/events/1359-aim-new-provisional-tax-option-for-small-business-on-demand/
