TRADE ASSOCIATION NETWORKING NEWSLETTER


SECOND BIANNUAL| 2018

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In this edition we look at upcoming changes in the requirement to file payroll information to Inland Revenue, the new register of health and safety professionals, and tools provided by MBIE to assist with choosing the right business structure.

PAYDAY FILING COMPULSORY FROM 1 APRIL 2019

Since 1 April 2018 employers have had the discretion to file payroll information either every payday or month. From 1 April 2019, filing payroll information every payday will be compulsory. Payroll information on an employee must be filed to Inland Revenue within two working days of paying that employee.

If you are an employer paying more than $50,000 PAYE and employer superannuation contribution tax per year, you will need to file electronically. If your PAYE and employer superannuation contribution tax was less than $50,000 for the previous year ended 31 March 2018, you can choose to file electronically or by paper returns.

PAYE payment dates and methods of payment are not affected. This means employers are required to continue filing employer deduction forms and sending the payment for PAYE deducted once a month.

Please contact us if you have any questions on your obligations as an employer.

HEALTH AND SAFETY PROFESSIONAL REGISTER BACKED BY ACC AND WORKSAFE

With the help of both ACC and WorkSafe New Zealand, the Health and Safety Association of New Zealand (Association) has developed a Registerproviding a directory of professionals providing health and safety advice and services. The Register contains the contact details of a range of professionals who can assist with issues ranging from asbestos to worker fatigue.

The Register was developed from a recommendation made by the Government taskforce (convened) as a result of the Pike River Mine disaster. The taskforce found that the health and safety industry faces issues with the supply and demand of health and safety advice and services. In terms of the supply, the taskforce found that the lack of any requirement to meet a standard competency level contributed to the lack of quality advice. In terms of demand, many businesses (particularly small businesses) struggled to identify competent health and safety professionals.

The Register is free to use and aims to reduce the risk of serious harm and fatalities in workplaces. To be listed on the Register, health and safety professionals must meet specific standards in relation to qualifications, experience, continuing professional development, ethics, good character, and insurance.

Please contact us if you have any questions on health and safety, or your obligations under health and safety laws.

MBIE'S CHOOSE BUSINESS STRUCTURE TOOL FOR SMALL TO MEDIUM BUSINESSES

The Ministry of Business, Innovation and Employment (MBIE) has released the Choose Business Structure Tool (Tool) designed to assist business owners determine how to structure their business.
The Tool considers the following three questions:

  • How many business owners will the business have;
  • Whether the business owner intends to seek investors or sell the business in the future; and
  • Whether running the business is likely to involve large costs, loans, or debt?

The Tool takes into consideration various obligations the business may face, and generates a suggested business structure or instructs users to seek professional advice.
At this stage, the Tool considers the following structures:

  • Sole proprietorships;
  • Partnerships;
  • Limited liability companies

Limited liability companies.The Tool does not consider other structures including, trusts, unlimited liability companies, and limited liability partnerships.

Generally, the Tool is an excellent resource to help understand what options are available when establishing a business. However, it does not beat professional advice. Professional advice can address further questions including:

  • How may this venture affect my relationship with my spouse or de facto partner;
  • How may the time spent on the business be shared between the participants and how can this be reflected in the structure of remuneration as well as ownership; and
  • What avenues can be pursued for finance and growth in the future?

We recognise Trade Associations are generally established entities, many of which use the Incorporated Society model. However if your Association is considering potential commercial arrangements or ventures this MBIE tool may prove useful.

Please contact us if you would like more information about structuring arrangements.

Tom Mahony / Partner
E: tom.mahony@mbhlaw.co.nz
P: 04 974 4703

Harry Rattray / Associate
E: harry.rattray@mbhlaw.co.nz
P: 04 974 4340

Diako Ishmael / Solicitor
E: diako.ishmael@mbhlaw.co.nz
P: 04 974 4707

Disclaimer: The information contained in this newsletter is provided for informational purposes only, and should not be construed as legal advice on any matter.


 

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