FAQs

I am starting a business, what type of entity should I start?

When first starting out in business one of the first questions is what type of business structure should I use? This often comes down to personal preference and other factors like “how big do you want to grow?”. The typical options are Sole Trader, Partnership, Company, Limited Liability Partnership and Trusts. We mainly deal with Sole Traders, Partnerships, Company’s and Trusts.

The Government website business.govt.nz has a lot of useful information, such as what business structure to use and business plans etc.

 

Business types and tax

The Sole Trader and Partnerships are the simplest structures as these are based on the personal individuals and taxed at the individuals tax rate. The company structure is a separate entity to the individual and is taxed at the company rate of 28%; Trusts are also separate entities from the individuals and they are taxed at 33%, then some of this income can be distributed to individuals.

Please contact us if you want to have a more in-depth conversation about these different structures, as there are times when you reach information overload or reading it still doesn’t make any sense.

Payday Filing with the IRD

As of April 1st 2019 all employers must file with your payday. This can be done electronically via import, entered on screen or on paper (only if your PAYE eductions re less than $50,000).

We recommend calling your payroll provider to find out where they are with being ready for payday filing for April next year. The earlier you can get started under the new system the less trouble the forced changeover will be.

 

For more information please click here or send us a message or phone us and we’ll be able to help.

Managing payroll and your employees

Managing payroll can be cumbersome if you are not familiar with employing, but we can take this burdensome job and become your payroll filers. Otherwise you can do it yourselves and we can advise on any payroll issues that you might come across. Please note we do not offer Human Resource information as that is an altogether different aspect.

 

New Employees

When you hire a new employee there is some information which you need to acquire as part of your onboarding process

  • NZ Bank Account

  • IRD Number

  • Address

  • Personal email

  • Date of Birth (Compulsory as of April 1st 2019)

  • Completed tax declaration form (IR330)

  • Do they have a student loan?

  • Completed kiwisaver deduction form (KS2) or opt-out form (KS10)

  • Next of Kin details in the event of emergency

 

Current Employees

Sometimes it pays to go through the information that you already have on current employees and update what is missing - this is especially important due to the payday filing requirements as of April 1st 2019.

I already use an accounting system which is not Xero, what are my options?

Our preferred choice is Xero which provides flexibility both for yourselves and us. If you are already using other software you can continue to do so or we can switch you over to Xero - whatever works for you.

How do I claim on my Home Office?

By calculating the square meters of your home and office you can work out which percentage of your home - and therefore its costs - can be attributed to the office.

You can claim a proportion of your:

  • Phone

  • Internet

  • Power

  • Rates

  • House Insurace

  • Interest paid on your mortgage

 

For more information please click here or send us a message or phone us and we’ll be able to help.

How do I claim on my Personal Vehicle?

There are two ways you can claim on work use on a personal vehicle:

  • Keep a log book of kms and then reimburse $0.76 on the first 14,000km and then $0.26 thereafter.

  • Reimburse actual costs

 

For more information please click here or send us a message or phone us and we’ll be able to help