Things to consider
Hiring an employee is a big decision. To make sure you hire the right person for the job, consider these things:
- how much work needs doing
- when work needs to be done by
- the difference between an employee and a contractor
- what level of responsibility you’re willing to take on
- what the rules are around different staff types.
Register as an employer
No matter how long you’ve been in business for, hiring your first employee is a real milestone and an exciting step to take.
Register as an employer with Inland Revenue (IR) if you:
- know you’re going to hire a permanent, fixed-term or casual employee
- have your IR number ready
- you’ve considered offering your staff payroll donations or fringe benefits
- know of your responsibilities in relation to KiwiSaver accounts of your employees.
If you’re not sure of all the above, check Inland Revenue’s First-time employer’s guide.
If you are ready to go ahead, either:
- use Inland Revenue’s register as an employer online service
- post a completed Employer registration form (IR334) to IR.
What paid employees need
All paid employees need the following:
- any equipment needed to do their job, like a computer.
- a signed employment agreement specific to their role and employee type – this includes things like hours of work, location of work, description of work, and salary.
- a tax code declaration (IR330).
- relevant KiwiSaver forms (for New Zealand residents or those on a long-term visa).
- health and safety training and equipment.
You also need to:
- register as an employer with Inland Revenue
- deduct PAYE from your employees’ salary and wages, which you record in your Employer monthly schedule (IR348) and Employer deductions form (IR345)
- pay annual ACC levies.
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