Employer Obligations



'Taxation' Responsibilities of the Employer
When you register as an employer the IRS will send you an information pack containing the books and forms that you need to get started. They also send the forms that you will need to complete and return by the various due dates.

Your Main Obligations are:

  1. You have to keep full wages records for your employees

  2. You need to complete tax code declaration forms or certificates (IR330), which are sent to you by the IRS. You will receive these and your employees will have to fill them in.

  3. You need to deduct FED INCOME TAX from the wages and salaries paid to your employees and these have to be paid to the IRS.

  4. You will need to deduct from the employee’s wages, any child support required.

  5. You will need to deduct from payments to employees, any student loan repayments for loans borrowed by the student during their university studies.

  6. You will need to pay to the IRS the fringe benefit tax on any fringe benefits you give to your employees.

  7. You need to complete an employer monthly schedule (IR348) and enclose details of all your employees’ deductions when sent to IRS. The IRS will send you this form every month. You will then also need to complete a monthly summary form (IR345) and send this in with payment by the due date, which is normally 20th of the following month.


'General' Responsibilities of the Employer
The responsibilities of an employer in business are many and complex. As an employer, you should sit down with your accountant and lawyer, and document all the areas that have to be complied with, so you don’t fall foul of any law or regulation.

Some of the areas that an employer should be aware of include the following:

  • Keeping good records.
  • Avoiding discrimination.
  • Sexual harassment.
  • Making sure ACC cover is in place.
  • Providing superannuation.
  • Providing safe and healthy workplace conditions.
  • Allowing employees to join unions if they require.
  • Employment of underage people.
  • Conduct of interviews.
  • Watching the Human Rights Act and the Privacy Act requirements.
  • Making sure employment agreements are in place for all employees.
  • Complying with requirements of annual leave and special leave


Who is an 'Employee'?
An employee is a person of any age who is employed by an employer to do any work for hire or reward under a contract of service. This includes part-time staff, or anyone at all employed for a short period. If you control how and when a person’s work is done, then the person is employed by your business and is termed an employee.

That person has to do the work, and cannot hire other people to do it. The worker has to do what you tell them to do on the job, for which you pay them a set rate, which is multiplied against the hours of work they do for you to arrive at their wage of salary. The person works on your premises or at a place you specify and you are responsible for the quality and the amount of work that person has to undertake. All these points will confirm that the person is an employee of your business.


Who is an 'Employer'?
An employer is someone who employs an employee to do work for them.