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McLEAN AND CO.
Parental Leave Payments to Increase in July 2013
Do You Need to Register for GST?
Renting Out Your Home- Tax Obligations
Trial Periods- the First Ninety Days
Families with new born babies can expect an increase in parental leave payments from 1 July this year.
The maximum amount of parental leave payment for eligible employees will increase from $475.16 to $488.17 a week. The minimum amount of parental leave payment for self-employed persons will also increase, from $135.00 to $137.50 a week.
Under the Parental Leave and Employment Protection Act 1987, parents eligible for the scheme are entitled to up to 14 weeks paid leave at a rate calculated on the basis of their average weekly earnings.
The maximum rate is reviewed every year to account for any increase in average weekly earnings.
The end of the tax year is a good time to review your GST status and check whether you need to register.
You must register for GST if you carry out any taxable activities and your total turnover at any point:
You’re required to register for GST within 21 days of any of these situations applying to you. IRD rely on you to take this action yourself and may charge penalties if you don’t register and they find out through routine checks.
If you have an annual turnover of $60,000 or less, you can register for GST if you want to.
People planning to rent out their homes or rooms during major events are being reminded to make sure they understand their tax obligations.
Quoting statements from IRD-
Inland Revenue uses a number of techniques to identify people earning income from additional sources. These include the use of third party information.
TRIAL PERIODS- THE FIRST NINETY DAYS
All employers in New Zealand can use trial periods for the first 90 days of a new employee’s employment. Using a trial period allows the employer to terminate an employee within this period without the employee being able to take personal grievance action for unjustified dismissal.
Arguably, making sure you get the recruitment process right in the first place is a far better option than the trial period as a ‘testing’ period in which to determine the suitability of your new employees. That being said, trial periods can be very useful when you new employee doesn’t work out in quite the way you had hoped and planned.
If you have a trial period clause in your agreement or intend to introduce one, here are a few considerations which you should be aware of:
If you do decide to dismiss an employee within the trial period, you are not required to give an employee access to information regarding the decision to dismiss or provide the opportunity for them to comment before the decision is made. Nor do you need to provide an employee with written reasons for termination where requested following termination.
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