Plenty to do before Christmas shutdown
Sunday, 13 December 2015
Chartered accountant group, NZ CA Limited, is reminding businesses that there are important tasks still to be completed before the doors can be closed for the great New Zealand Christmas shut-down.
Sue Merriman, chairperson of NZ CA and also partner in Greymouth chartered accounting and business advisory firm Marshall & Heaphy Limited says,” There’s always so much emphasis on Christmas cheer that sometimes businesses forget to do a whole lot of important tasks. For example, many businesses forget to formally notify their staff of their shutdown – you’re legally required to give your staff 14 days’ notice.
“Boxing Day and the Day after New Year’s Day fall on Saturdays this year, so employers will need to consider the impact of this.”
Merriman says she often feels like the Christmas Grinch reminding clients about their tax obligations, particularly when it relates to Christmas parties, and presents for staff and clients. “The costs of parties and gifts can be subject to fringe benefit tax,” she says.
“Business owners should diary the payment of their GST, PAYE, fringe benefit tax and any provisional or terminal tax that’s due over January. If you’re away in January, set up the tax payment and make sure you’ve enough money in the account to cover these payments. Sometimes business forget this, and it’s terribly embarrassing for everyone – not to mention costly – to sort it all out. And not to forget the payment date is when the Inland Revenue receives the payment, not when you send it in!” says Merriman.