KiwiSaver changes now in effect
If you are an employer, there are several KiwiSaver changes that came into effect on 1 April that you need to be aware of.
- The default contribution rate for employers and employees is now 3.5%. Make sure your payroll settings are up to date with the new rates.
- Members aged 16 and 17 years old now qualify for employer contributions of 3.5%. Make your employer contributions for your 16- and 17-year-old employees.
- Members can apply for a temporary rate reduction for between 3 and 12 months if they cannot afford the rate increase. You must process any temporary rate reduction letters your employees give to you.
Fringe benefit tax
New fringe benefit rules are now in effect. These changes may affect how you treat certain benefits.
In some cases, you now have more flexibility to choose whether to apply FBT or treat a benefit as employment income with PAYE deducted.
You may want to review how you currently treat motor vehicles, gift cards, and certain employee reimbursements to make sure you are applying the rules that best fit.
Investment Boost
As we head into tax return season, it’s important you are aware of Investment Boost and how you can claim it on new business assets when filing your income tax return.
Investment Boost is a tax incentive (a form of accelerated depreciation) that allows businesses to claim 20% deductions for the costs of new business assets.
Examples of depreciable business assets include new commercial and industrial buildings, machinery, technology, equipment and work vehicles.
Expert tax guidance
Thinking of starting your own business, or have you recently launched one? Inland Revenue is here to help with a series of free business seminars.
These seminars cover the essential tax basics that every business owner should know to stay on top of your obligations.
Practical tax tips will be shared, making it easier for you to manage your finances and keep your business compliant.
Best of all, these seminars are free and available throughout New Zealand. If you can’t make it in person, they have online seminars available too.