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Tax Talk

Making payments to IRD - what's changed

IRD are changing some of your options to make payments to them as of 1 October 2014.

Paying at Westpac

If you're used to paying your tax through Westpac, you won't be able to pay by cheque any more or drop off returns and forms. You will still be able to pay through Westpac by:

- cash and eftpos payments

- online banking

- credit/debit cards

- international money transfers

Posting cheques and returns - get the timing right

You can post cheque payments and returns direct to IRD. From 1 October all cheques must reach IRD on or before the due date to avoid interest and late payment penalties. Until now, it's been enough that the postmark shows you posted the cheque on or before the due date but not anymore.

Online payments

IRD is encouraging taxpayers to make their payments online. You can file returns and make payments online, up to and including the due date. If you haven't done this before but want to start, we can walk you through it.

Parental leave

On 1 July, the rates for paid parental leave increased. If you're self-employed or an employee and eligible for paid parental leave, you may receive up to a maximum of $504.10 a week before tax. If you're self-employed and make a loss or earn less than the minimum wage, for at least 10 hours work a week, the payment is $142.50 each week before tax (equivalent to 10 hours each week at the current minimum wage rate).

If you'd like a fact sheet on your obligations as an employer or on paid parental leave for self-employed people, please contact us.

Interest rates rise - employee loans

Do you provide low interest loans to employees? If so your FBT returns need to reflect the new interest rate of 6.13% for return periods from 1 July onwards. This is the FBT prescribed interest rate used to determine the fringe benefit value of low-interest loans to employees.