EMAIL NEWSLETTER
MARCH 2014
Welcome
again to the McLean
and Co. Newsletter
in which we discuss current taxation and business matters. We trust
you find it informative.
We
are happy to accept new clients. We would be happy to assist colleagues
and acquaintances as new clients.
INDEX
-
Business Name Change
-
Office Closure
-
Year End
-
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 be
used
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.
OFFICE
CLOSURE
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
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.
- You can pay in full.
- You can make an
instalment arrangement where you repay an agreed amount over time.
- IRD can write off an agreed amount if we determine that full
payment would cause you serious hardship.
- A combination of an instalment arrangement and a serious hardship
write-off.
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.
NEW
MINIMUM WAGE RATES TAKE EFFECT FROM 1 APRIL 2014
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:
- 16-
and 17-year-olds in their first six months of work with a
new employer (or until they are training or supervising
others)
- 18-
and 19-year-olds who have been paid a benefit for six months
or longer, and who have not completed six months of
continuous work with any employer since starting on benefit
(or until they are training or supervising others)
- 16-
to 19-year-old workers in a recognised industry training
course involving at least 40 credits a year.
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
LEVY CHANGES FROM 1 APRIL 2014
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 Rates
Levy rate decreases will reduce the cost of ACC cover for both
self-employed people and employers. These changes include:
- 17% decrease in the average Work levy
- 15% decrease on the Earners’ levy.
2014/15 Levy Rates at a Glance
| Who Pays and
How they Pay |
Current 2013/14 |
2014/15 Levy
Rates |
Percentage
Change |
|
Work Account
Levy
Cover for work injuries paid by self-employed people* and employers
(invoiced directly by ACC)
|
$1.15 |
$0.95^ |
-17% |
|
Earners’ Account
Levy
Cover for non-work injuries paid by employees (through PAYE) and by
self-employed people
|
$1.48 |
$1.26 |
-15% |
|
Motor Vehicle Account
Levy
Cover for motor vehicle injuries paid by motorists (through licensing
fees & petrol levy)
|
$330.68 |
$330.68^ |
No change |
Experience Rating Loading
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.
EASTER
AND ANZAC DAY TRADING HOURS
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:
- Good Friday Friday 18
April
- Easter Monday Monday 21
April
- ANZAC Day Friday 25
April
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.
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:
If we
can assist further, please email McLean and Co as follows:
CONTACT
McLEAN AND CO. BY EMAIL BY CLICKING ON THIS LINK
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