Dollars and Sense newsletter December 2019

Quarterly Newsletter

download newsletter as a PDF

The team at EBP wish you all a very happy and festive holiday season.

A reminder that our offices will be closed from 21 December 2019.

We re-open at 8.30am on Monday, 13 January 2020.


Do you have staff taking leave over Christmas? Are systems in place to make sure everyone gets what they're entitled to? Even if someone else handles your payroll, you are responsible for making sure holiday pay and leave payments are handled correctly.

Remember:

  Whether your staff work full-time, part-time, casual, on-call, or shift work, they're entitled to any benefits that come from working on public holidays.

  If your employee agrees to work on a public holiday that falls on a day they would normally work, they will need to be paid time and a half PLUS receive another paid day off later, otherwise known as a day in lieu. If an employee works on a public holiday, and it is not a day they would usually work, the employee is only entitled to the time and a half.

  Employees can choose to take their day in lieu:

  • on a mutually agreeable date that is not a public holiday

  • on another day on which they would normally be working

  • for a whole working day, regardless of how much of the public holiday they actually worked.

  Make sure your payroll system:

  • is flexible enough to handle different working arrangements (eg, changing employee work schedules)

  • records all relevant time worked and payments made

  • has accurate and up-to-date information.

  If you realise an employee hasn't been paid the right amount, be up front and correct the mistake immediately.


Overseas businesses selling goods valued at $1,000 or less online to New Zealanders are now required to register for, collect and return GST where their supplies to New Zealand exceed (or are expected to exceed) $60,000 in a 12-month period.

Goods over $1,000 will continue to have taxes and duties collected at the border.

This is good news for local businesses who may have been at a competitive disadvantage by having to charge GST on their sales, when their foreign competitors didn't. Want to know more? Check out our blog article "Upcoming GST changes for low-value imported goods", posted on our website 27 September 2019.


If you're protecting your family property in a trust, there may be changes you need to make before the new Trusts Act comes into force in January 2021.

The changes to the Trusts Act, the first in more than 60 years, aim to make trust law more efficient and accessible, lower administration costs, simplify core trust principles and essential obligations for trustees, and make it easier to resolve disputes.

We dedicated our September 2018 newsletter to this topic so we recommend checking it out for actionable steps you can take now, to ensure you're ready for these changes in a year's time.


If you plan on giving gifts to clients, know the rules around claiming tax deductions. The rule of thumb is: you can only claim 50% of food and/or drink gifts, but all other gift items are 100% deductible.

Note that a gift hamper containing some - but not only - food and drink, needs to have the expense apportioned between the 50% deductible and the 100% deductible items.

For example:

FBT

If you are giving gifts to staff you may also be liable for Fringe Benefit Tax.

Gifts under $300 per employee per quarter are exempt. If the total value of benefits for all employees exceeds $22,500 for the year, the full value of the benefits will be subject to FBT.

FBT rules can be complex so we advise contacting us if you are in any doubt.


KEY TAX DATES

December 2019 to January 2020


Contact Us

If you wish to discuss any of the matters raised in this issue of Dollars and Sense, please contact our office - a member of our friendly team will be happy to assist.


Kind Regards

The team
Ean Brown Partners Limited


What did you think of this email?
Smile emoji Meh emoji Sad emoji

Handy weblinks:

Our
newsletters

Newspaper icon

Our
blog

Pencil icon

Our
homepage

Home icon

Our social channels
Facebook logo LinkedIn logo Twitter logo RSS Feed icon

Disclaimer

The information contained in this newsletter is of a general nature and should be used as a guide only.
A senior representative of Ean Brown Partners Ltd should be consulted for specific advice before any action is taken.

Related Pages:

Meet The Team

Ean Brown
Director/ Chartered Accountant
FIND OUT MORE
Barbara Collinson
Team Manager/ Chartered Accountant
FIND OUT MORE
Andrea Allen
Chartered Accountant
FIND OUT MORE
Deriarny Evitts
Trainee Accountant
FIND OUT MORE
Jared Slatter
Chartered Accountant
FIND OUT MORE
Pam Brown
Accounting Technician
FIND OUT MORE
Sally Adams
Chartered Accountant
FIND OUT MORE
Suzie Dossett
Accountant
FIND OUT MORE
Denise Bellamy
Tax Administration
FIND OUT MORE
Julie Jenkins
Administration
FIND OUT MORE
Renee Marais
Reception
FIND OUT MORE
Sheila Ujdur
Administration
FIND OUT MORE
Lena Watene
Administration
FIND OUT MORE
Meet more of the team

Contact / Connect