The focus for payroll is paying the salary or wage of employees but in some situations the deduction of PAYE from a contractor’s invoice is also assigned to payroll.
Key points to this change:
- A new form is to be used by contractors, the “ir330C” for all payments received on or after 1 April 2017 To download a copy of the new ir330c use the following link: http://www.ird.govt.nz/forms-guides/number/forms-300-399/ir330c-tax-rate-notification-contractors.html
- If the contractor is receiving schedular payments before 1 April 2017 they still need to provide your business with an IR330 and not the IR330C.
The contractor can only choose a new tax rate twice within a 12 month period with the same business.
If the contractor needs to change their rate more than twice in a 12 month period the contractor will need the agreement of the business contracting them.
Full details of the changes can be found here: http://www.ird.govt.nz/contractors/
NZPPA Supporting payroll since 2007!