Hiring Students or Casual Staff over Christmas?

Are you hiring students or casual staff over the Christmas and New Year period? Did you know the following:

• Exemption from Student Loan Payments: If you employ full-time students and they earn under $19,084 for the 2016/2017 tax year they can apply for an exemption from making student loan repayments on the wages or salary that you pay them. They can apply for an exemption certificate through their myIR account with the IRD.
• KiwiSaver Exemption: if temporary employees are employed for 28 days or less, or employed on “as and when” basis without a specific end date for 28 days or less, you do not have to enroll these employees for Kiwisaver. However, if the employee is already a Kiwisaver member and gives you a KS2 you must deduct KiwiSaver and pay the employer contribution.
• Tax Code Declaration (IR330): all students and casual staff must complete an IR330. If the Tax Code Declaration is not completed, you must deduct tax at the no-notification rate. For employees, this is 45 cents in the dollar plus the ACC earners levy.
• Casual Employment Agreement: to comply with your obligations under the Employment Relation Act 2000 you must ensure that there is a written contract between the employee and your company. The agreement must be signed by both parties prior to the employee commencing work. If you do not wish to engage an lawyer to draft a casual employment agreement you can you the Ministry of Business, Innovation and Employment’s Employment Agreement Builder. However, we do strongly recommend that you have a lawyer review any such agreement at the least to avoid any pitfalls.

If you have any queries, please contact Kirsten Murfitt.