If your business is a registered company
If you employ your spouse or partner and your business is a registered company, you have the same tax and employment obligations to them as to anyone else.
That means you need to:
- have a signed employment agreement
- provide minimum employment rights, including leave, minimum wage and regular breaks
- pay ACC levies for them
- deduct PAYE
- make contributions to their KiwiSaver.
Everyone you employ needs a written employment agreement, including your spouse or partner. Use the Employment Agreement Builder to guide you through steps to create a proper agreement.
If you’re a sole trader or operating in a partnership
If you employ your spouse or partner and you’re a sole trader or you’re operating in a partnership, you need to get approval from Inland Revenue to pay your spouse or partner wages.
If you don’t, you can’t claim a deduction for these in your business accounts.
You need to let Inland Revenue know:
- the type of business your spouse or partner will be employed in
- what work they’ll do for you
- the average numbers of hours they’ll work each week, and how many weeks a year
- how you’ll pay your partner
- how much they’ll be paid
- details of your other employees, including how much in total you pay them.
You need to make another application to Inland Revenue if you increase your spouse’s or partner’s wages for any reason other than a standard pay rise.
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