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McLEAN AND CO.
Business Name Change
Income Tax Payments Due
New Minimum Wage Rates Take Effect from 1 April 2014
ACC Levy Changes from 1 April 2014
Easter and ANZAC Day Trading Hours
BUSINESS NAME CHANGE
We're changing our business name to TotalAccounting from 1 April, 2014. Apologies that you will have to put up with old stock and name stationery for a little while, as our professional body is combining with the Australian equivalent, and there will be a new logo, so we are awaiting this before stationery reprinting, and there are other stocks around which will eventually beused up. Also our website is in the process of being revamped and will be still under McLean and Co. for a while. Eventually all will fall into place.
The Office is closed from Wednesday 2/4/2014 until Friday 18/4/2014. The writer is off to the South Island to ride the Central Otago Rail Trail and walk the Queen Charlotte Sound Track. If you would like contact on return, leave a message on the office telephone or by email.
Year End for most taxpayers is 31 March, 2014. Your "Business Documentation Required for Preparation of Financial Statements" is in the Post. The system we work to is list and see clients in order of when they call to advise that they are ready. The list can mount up, so the earlier you would like you work done the earlier you ring. We generally can't see any clients until late May, as we have to wait for Tax Returns and Summary of Earnnings for Wages for clients, and these aren't sent by IRD until that date.
INCOME TAX PAYMENTS DUE
Many clients have Terminal Tax to pay on or by 7 April, 2014 and Provisional Tax to pay 7 May, 2014- you would have been advised if you have to . Paying your bill on or before due dates l means you avoid any penalties and interest. If you do miss the due date, it's never too late to pay and stop more penalties and interest adding up.
This graph shows how quickly penalties and interest can add up on a $1500 bill:
There are a range of options available for paying amounts due.
If you are unable to pay the full amount due on time, you should contact IRD as soon as possible. You do not have to wait until the due date for payment has passed. You can phone IRD on 0800 227 771 or, if you are in business or have a student loan, on 0800 377 771.
The new adult minimum wage rates (before tax) that apply to employees aged 16 or over will be:
$14.25 per hour, which is
$114.00 for an 8-hour day,
$570.00 for a 40-hour week.
The Starting-out wage rates and the training minimum wage rates (before tax) will increase to:
$11.40 an hour, which is
$91.20 for an 8-hour day or
$456.00 for a 40-hour week.
The Starting-out wage applies to:
The training minimum wage applies to employees aged 20 years or over who are doing recognised industry training involving at least 60 credits a year as part of their employment agreement, in order to become qualified.
ACC recently unveiled important changes to the ACC scheme effective from 1 April 2014.
These changes include a decrease in the ACC levy rates paid by all self-employed people and businesses and an increase in the experience rating loading from 50% to 75%.
Levy rate decreases will reduce the cost of ACC cover for both self-employed people and employers. These changes include:
|Who Pays and How they Pay||Current 2013/14||2014/15 Levy Rates||Percentage Change|
Motor Vehicle Account
Coinciding with the upcoming levy changes, experience rating loading will increase for some businesses from April 1 2014. ACC are adjusting the loadings on experience rating to more accurately reflect costs that businesses with higher claims rates drive to the scheme.
Experience rating takes into account a business’s claims history when setting its levies. Under experience rating, employers who have lower-than-average injury rates, with better-than-average rehabilitation or return to work rates, may receive a discount on their work levy. Those with worse-than-average claims experience may receive a loading on their levy.
The experience rating discount will stay at 50% – however, the calculation for businesses that have a worse-than-average claims experience rating could increase from 50% up to 75%.
This increase is not only fairer for businesses whose safety performance is average-to-excellent but should create an incentive for businesses with worse-than-average performance to develop good health and safety practices.
With the Easter holiday period and ANZAC day fast approaching, now’s a great time to take a look at your trading hours and your responsibilities for paying staff.
All shops must be closed on Good Friday and Easter Sunday and any shops that don’t comply are at risk of prosecution. The same applies on ANZAC day before 1.00pm.
Some exemptions apply to ensure certain types of essential services and shops remain open – such as restaurants, dairies and service stations. You can find out if your business is exempt by visiting MBIE online.
Employees who normally work on these days are entitled to a paid day off. If your employees are required to work, they’re entitled to time and a half for the hours worked on those days, and an alternative holiday if the day is otherwise a working day for the employee.
Easter Sunday is not a public holiday – so there are no entitlements to a paid day off or time and a half for hours worked on this day.
Easter and ANZAC day holidays for 2014:
If you’re unsure about employee entitlements or whether you’re able to open on these days, get in touch with MBIE's Contact Centre before the Easter period.
|McLEAN AND CO KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE||FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE|
|FOR INFORMATION ABOUT COMPANY INCORPORATION PRESS HERE||FOR PREVIOUS MONTH EMAIL NEWSLETTERS PRESS HERE|
If we can assist further, please email McLean and Co as follows: