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Are you paying contractors or working as a contractor?

Posted on May 8, 2017 in Uncategorized | No Comments
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Do you pay contractors or are you contracting to another business?

From 1 April 2017 the rules have changed for how contractors pay tax on schedular payments.  Some of the major changes are:

  • Contractors can opt to have tax withheld from schedular payments (with the agreement of their payer) regardless of the work that they do.  Prior to 1 April tax was only deducted before payment to the contractor for certain types of work.
  • If you were receiving schedular payments before 1 April 2017 then you can now select the rate of tax to be deducted (subject to minimums determined by the IRD – on the IR330C form)
  • If you work under a labour hire arrangement for a labour hire business you have to have tax deducted from your schedular payments.  You can apply for a 0% special tax rate if you have a history of good compliance with the IRD.

For more information refer to the link below or contact us here at Skipper Lay.

https://www.ird.govt.nz/news-updates/contractor-changes.html?id=homepage

 

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