McLEAN AND CO. Chartered Accountants

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 P.O. Box 10 , Clive         133 Main Rd, Clive           Tel. (06) 8700952          Fax. (06) 8700955 

Email murray@mcleanandco.co.nz                                  Website www.mcleanandco.co.nz

 
 
EMAIL NEWSLETTER  JUNE 2011
 

Welcome again to the McLean and Co. Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

NEW CLIENTS

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

  1. Vehicle Mileage Rate amended.

  2. IRD Tax Refund Phishing Scams

  3. Employment Agreements for all Employees- A Requirement from 1 July 2011

  4. What to put in Employment Agreements

 

VEHICLE MILEAGE RATE AMENDED

IRD monitors fuel prices and publishes a motor vehicle mileage rate at least once a year. The mileage rate is for expenditure incurred for the business use of a motor vehicle, it doesn't apply in respect of motorcycles.

The current mileage rate has been amended to 74 cents per kilometre for the 2011 income year. This rate applies to both petrol and diesel fuel vehicles.

As the Commissioner's mileage rate may not reflect their true costs, actual costs or the logbook method can be used instead. Employers may use the motor vehicle running cost data published by other reputable sources, eg, the New Zealand Automobile Association Incorporated, as an alternative reasonable estimate for reimbursement to employees

 

IRD TAX REFUND PHISHING SCAMS

There has been a recent prevalence of IRD related phishing scams.

Criminals use online phishing scams to get your personal information, money, and identity. They send out fraudulent emails to thousands of customers every day. Many promise a tax refund to customers.  Phishing scams range from the sophisticated, convincing, and professional to those with poor English and obvious spelling and grammar mistakes.

Unfortunately, some people fall victim to these scams providing information, money, and even their identity to these online criminals.

Warning Signs of a Phishing Attempt

If you receive an email notifying you of a tax refund or asking for your tax information, here's some tips to determine if it is genuine:

  • Does it include a hyperlink?
  • Does it include a specific dollar value of the refund?
  • Does it have errors in spelling or grammar?

If you answered "Yes" to any of those questions, delete the email from your Inbox and Trash folder.

 

EMPLOYMENT AGREEMENTS FOR ALL EMPLOYEES-  A REQUIREMENT FROM 1 JULY 2011

The  Department of Labour is reminding all employers that from 1 July 2011, employers must keep copies of employment agreements or terms and conditions of employment for all employees signed by both parties.

“Employment agreements have been required by law since the introduction of the Employment Relations Act 2000.  There is evidence that many workplaces still don’t have employment agreements in place, and this 1 July deadline will put responsibility on all employers to ensure agreements are in place, or they may face penalties,” says the Department of Labour’s Chief Adviser – Employment Relations, Craig Smith.

“It’s the employer’s responsibility to maintain and keep an up to date copy of each employee’s employment agreement that reflects the current terms and conditions of the employment relationship. Employers must also provide a copy of the agreement if an employee requests it,” says Mr Smith. 

“Recent changes to the Employment Relations Act give labour inspectors the ability to seek a penalty against an employer who is in breach of employment agreement requirements,” he says.

“There are penalties of up to $10,000 for individuals and $20,000 for companies for failure to comply with the legislation,” says Mr Smith.

“If a 90-day trial period is agreed between the employer and the employee it must be in the written employment agreement before the employment begins, otherwise the trial period doesn’t comply with the law,” he says.

There are some provisions that must be included in employment agreements by law, and there are also a number of minimum conditions that must be met regardless of whether they are included in agreements.

 

WHAT TO PUT IN EMPLOYMENT AGREEMENTS

Under the Employment Relations Act 2000, where there is no collective agreement the individual employment agreement must be in writing and must include:

  • the names of the employee and the employer
  • a description of the work to be performed
  • an indication of the place and hours of work
  • the wages or salary payable
  •  a plain language explanation of services from the  Department of Labour is available to help sort out employment relationship problems
  • a provision confirming the right to at least time-and-a-half on a public holiday
  • for most employees, an employment protection provision that will apply even if the employer’s business is sold or transferred, or if the employee’s work is contracted out.

Collective Agreements and their Relationship to Individual Agreements

The requirements for collective agreements are set out in the  collective bargaining section of the Department of Labour website. Employers must not undermine collective bargaining or collective agreements by automatically  passing on collectively bargained terms and conditions to employees not covered by that collective bargaining or agreement.

Minimum Rights in Legislation

Some minimum terms and conditions of employment are imposed by legislation. These terms still apply, even if they have not been written into the collective or individual employment agreement. Employers and employees cannot agree to do away with any of these entitlements. They can, however, agree to better provisions if they wish.

The minimum legislative requirements cover the following:

See  www.ers.dol.govt.nz/relationships/minimum for more detailed information about minimum employment rights.

What other Issues can appear in Individual Employment Agreements?

There are a number of optional matters that are often found in employment agreements. These are issues that employers and employees may wish to include in the agreement or bargain about. The Department of Labour’s website offers an  Employment Agreement Builder that enables you to develop your own agreement.

Holidays

For information on holidays and leave please see the  holidays and leave section of the Department of Labour website.

Annual Holidays

Employees are entitled by law to a  minimum of four weeks' paid annual holidays after being in the job for a year, or to holiday pay for periods of employment less than one year.

Public Holidays

The 11 public holidays in the Holidays Act apply.

If employees work on public holidays they must be paid at least time-and-a-half for hours worked on a public holiday. If it is a day on which they would otherwise have worked they are also entitled to another day off as an alternative holiday (a  day in lieu).

Sick Leave

Employees are entitled by law to  five days' sick leave a year after being in the job for six months. If the leave is not taken, it can accumulate up to a maximum of 20 days.

Bereavement Leave

Employees are entitled by law to  three days' bereavement leave after being in the job for six months, on the death of an immediate family member.

Additionally, the employee is entitled to one days' bereavement leave where the employer accepts that the employee has suffered a bereavement.

 

 

McLEAN AND CO KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE
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The information provided in this email newsletter is for informational purposes only.   McLean and Co. accept no responsibility for the opinions and information expressed in the information provided and it is provided "as is" without warranty of any kind.    The user assumes the entire risk as to the accuracy and use of this document.   Readers are asked to seek professional advice pertaining to their own circumstances.    The McLean and Co. email newsletter may be copied and distributed subject to the following conditions:
  • All text must be copied without modification and all pages must be included.
  • This document must not be distributed for profit.    

 

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