Employing a spouse or civil union partner
If you employ your spouse in your business you must get approval from Inland Revenue to pay them wages unless your business is a company. If you do not have approval you cannot claim a deduction for the wages in your business accounts.
Definition
The definition of "spouse" for this purpose currently includes a husband, wife, defacto partner or a civil union partner who lives with you. It does not mean a person you are separated from.
What to do
You should apply for approval before you start paying wages to your spouse. Write to Inland Revenue and tell them:
- the type of business they will be employed in
- full details of the work they will do
- the average numbers of hours they will work each week, and the number of weeks worked during the year
- details of any other workers you employ and the total amount paid as wages, not including the wages you will pay to your spouse
- how payments will be made, such as cash at regular intervals, periodically, or crediting to an account
- the amount of wages they will receive.
You need to make another application if you increase the wages as a result of:
- an increase in the duties performed by your spouse, or
- an increase in pay that is not a general wage increase.
- This information is provided by Inland Revenue
http://www.ird.govt.nz/payroll-employers/employ-staff/spouse/
