You need to be careful when deciding between employee or contractor. The mistake of paying someone as a contractor if they really fall under the category of an employee can be very expensive. This can be a trap that can cause you serious problems later.
What is RWT (resident withholding tax)
It is a tax deducted on dividend before making a payment to the shareholder. For example, if company made a profit of $100 before tax, $28 would be income tax. Net profit after tax $72 will be a liability payable to shareholders. A payment of $72 will be made to the shareholders, the name of this payment is dividend. The IRD is interested in collecting tax from this payment, with current highest tax rate being 33%, further 5% of deduction is imposed on the company. Hence, $5 will be deducted and paid to the IRD, this is called RWT.
The changes on Dividend and RWT are outlined in Taxation (Annual Rates for 2016-17, Closely Held Companies, and Remedial Matters) Bill.
The bill received royal assent on 30-03-2017. This Act came in to force on the same date, and in practice from 01-04-2017 income year.
Modern techs can save your time and give you edge over other competitors. Use of Facebook, LinkedIn, Google+ will be easy to reach large number of people. Dropbox or Google Drive can save your data in cloud so you don’t have to worry about losing your important data when PC crashes.
In November 2015, the Government released the fourth document in a series of discussion documents for public consultation planned for the next few years to support consultation on the Government’s proposals for modernising and simplifying tax and social policy administration in New Zealand.
You might think “I am in a small business, why I need a cash flow?” But small businesses are the most that require cash flow.
Many analysts stated that the main reason for small businesses not growing is because of poor cash management.
If you are a New Zealand resident for tax purposes, you will be taxed in New Zealand for all of your “worldwide income”. This includes income derived from New Zealand and from other countries.
“Cash is a king” you might have heard this many times. However, I must say the “Cash is Super King”.
Better managed cash flow is a very important financial tool that can change your business and push it to move forward. In simple terms, cash flow is money coming in to the business and money going out of the business.
What you need to know?
The Holiday act 2003 was enacted on 17-12-2003, it covers leave and holiday entitlements of an employee in his/her employment.
What is the Future of Accounting & Role of an Accountant?
Accounting is completely dependent on technology these days. Technology plays a vital role in today’s changing business environment. And there is no doubt accounting has been part of this. Over the past few years, there have been significant changes in accounting world. Yes, accounting wasn’t easier earlier than what we are doing these days with just one click.
