Business owner come employer?

For an Auckland small business to run successfully, you need to carry out all your responsibilities of a business owner with dedication and passion. If you are a small business owner as well as an employer, your responsibilities become manifold.

When you are only an owner, you need to focus only on your business growth and of course take care of your small business accounting needs. But, as your business expands, you might feel the need to hire staff to help you manage your business in a more professional manner. When you hire employees, several factors have to be considered and you should have a well laid-out plan about the number of employees you want to hire and their role in your organization etc.

How to become an employer

First, you need to register with the IRD as a new employer. Registration with the IRD is a simple process, either online or offline. You can register with your IRD number or if you don’t have one, apply for it by filling in IR 595/596 depending on whether you are an individual or non-individual in business. Once you have the IRD number, you can register online by filling in the online employer registration form or offline by filling in IR 334 and sending it to IRD, NZ.      Source: http://www.ird.govt.nz/payroll-employers/become-employer/register/

Once you start hiring employees, the most important thing is to get a Tax code declaration (IR330) filled in by them. Kiwi Saver members should also fill in a KiwiSaver deduction form (KS2). You should enroll your employees in KiwiSaver depending on their eligibility. Employer monthly schedule (IR348) with their employment start date should be sent to IRD.       Source: http://www.ird.govt.nz/payroll-employers/employ-staff/start-stop/

Employer-employee relationship

Employment Relations Act 2000 lays the foundation for the employer-employee relationship in an organization. The act specifies clearly the rights and responsibilities of both the employers and employees. As an employer, you need to be well informed about the policies and legislation that govern the sensitive relationship that exists between the employer and the employee.

Your responsibilities as an employer

As an employer, you are faced with many duties and responsibilities that have to be carried out in a meticulous fashion. Necessary salary deductions of your employees, remitting them to IRD NZ and filing employer returns are a few of the important duties of an employer.

You can check out the following page to get more information about the things you should do as an employer:

http://www.dol.govt.nz/publications/big6/index.asp

With several changes to NZ tax coming into effect on 1^st October, 2010, you should be aware of all the changes and stay updated with the relevant information on them. Once these changes become effective, you will need to calculate PAYE and other deductions according to the new rates.

Source: http://www.ird.govt.nz/payroll-employers/tax-changes-employers/

While your employees may be trained in several areas of your business, your book keeping and accounting work may be outsourced to an appropriately qualified professional accountant who would work hand in hand with your employees and take over your responsibility of calculating taxes and remitting them to IRD on time.

Outsourcing is a big advantage

By outsourcing, you can not only work for the development of your business, but you can let go of your worry about the complicated accounting procedures related to it. Outsourcing also leads to more productivity and profits as you have more time and peace of mind to focus on your business growth, so hiring a professional accountant will be very helpful to you in the long run. For your accounting needs, contact C M Business Services for a FREE consultation now.