Our vision for the future when employing people
Employing people may become easier soon. You can read about changes being considered below and watch a short video to see what some of these changes may mean for busy people like Mira.
It’s important to note that some of the examples below may require changes to legislation. The NZ Government has signalled that they are considering all these changes, and more. You can keep up to date on their proposals at www.makingtaxsimpler.ird.govt.nz (external link) .
You’d get started by registering as an employer through your accounting software with just a few mouse clicks. We’d confirm you were good to go straight away and email you helpful information about your employer obligations.
Plus it would be quicker and easier to get new team members set up correctly in your accounting software – before they start getting paid.
You’d use your software to submit new employee details, eg name, IRD number, tax code, direct to us. Straight away we’d confirm your new employee’s details are correct or let you know if something doesn’t look right. For example if your new employee supplied an “M” tax code, but should use an “MSL” tax code because they have a student loan.
No more need to wait for your monthly EMS to let us know you have someone new on board, and no waiting for a letter from us to let you know if a detail on your EMS doesn’t look right.
Your team members will pay the right amount of tax and student loans, right from the start. Plus you’ll save time since you won’t need to contact us to fix employee details on an EMS you’ve submitted.
We asked for your comments around the ideas we had and whether you thought they could work for you. Check out a summary of the feedback.
Thanks to everyone who took the time to share their thoughts.
Check out what these changes may mean for busy people like Mira.
What happens now
When you go online and register as an employer, we confirm your registration by sending you a letter. The letter can take a while to arrive. If you don’t register online, you’ll need to use a form, which can take time for us to receive and process.
We offer training to employers, but you need to attend a seminar in person. Sometimes seminars are only scheduled if there’s enough interest, so sessions might not happen at the time that works best for you.
When you take on a new employee, you need to get their tax code from them. Some people aren't sure how to work out their tax code, and choose the wrong one. If your employee gets ther tax code wrong and doesn’t pay enough tax, they'll face a bill at the end of the year.
Accounting software doesn't link to our system, so some employers have to manually transfer information from their business records to the forms they send us. Figures can be missed, or copied incorrectly. Mistakes take time and effort to put right.
Government’s policy consultation
Making Tax Simpler
Government is conducting a separate series of policy consultations on detailed proposals to make tax simpler.
You can find out about these on Government’s Making Tax Simpler (external link) website.
You might also want to find out more about this website.