MOBILE ACCOUNTING SERVICES 2008 NEWSLETTER Our Mission …. We at Mobile Accounting Services aim to serve your accounting needs by providing a service of superior quality at a fair price. We want to help you and your business reach your full potential. Our approach is to deal with you in a caring and cheerful way and we use the latest technology to improve our efficiency in providing a regular service to aid your on-going decision-making. Please call us whenever you need. We also welcome any feedback you may have. Mobile Accounting Services – EASY PAY Mobile Accounting Services offers clients the ability to pay for services in advance by regular bank payment, therefore spreading the cost over the year. For you, this means you can budget for your accountancy fees and won’t need to worry about that dreaded year end accountancy bill!! BONUS: If your credit balance is sufficient when your accounts have been completed, you will always receive your 5% discount for paying with-in 7 days!! Please speak with Donna or Sarah if you wish to take advantage of this option. Banklink Hints Use * wildcard banklink memorisation coding to capture all related entries. e.g Shell Anglesea – Memorise as usual but change to “Shell *”. In future Shell with anything following will be coded automatically. Are you a Registered Charity? The IRD now require all charities to be registered with the Charities Commission to qualify for a tax exemption. You had to be registered by the 1st July 2008 or your exemption will have been removed and tax payments will be expected. Applications can be made online at www.charities.govt.nz FYI - NZ POSTAL CODES Did you know NZ Post have brought in new address format guidelines? This means for you and us that all mail will need to be addressed in a certain way with postal codes. If we/you do not use postal codes, the mail may not be delivered to its destination. You can visit www.nzpost.co.nz to find out any code you need. Wage Update Computerized program Have you thought about using a computerised payroll program for wages? Now is the time to do it and take away all the worries of calculating annual leave/holiday pay, kiwi saver (including employer contributions and employer tax credit calculation), sick leave balances, and PAYE . • For those of you who are looking for a computerised payroll package we can offer Ace Payroll, New Zealand’s most widely used computerised payroll system at $250 + GST. This includes 6 months 0800 telephone support and for on-going annual support and upgrades the cost is $195 + GST. • For those of you who have MYOB Payroll we can order payroll upgrades for $249 + GST. You should already be using this to calculate employer kiwi saver contributions. Minimum Wages The minimum wage rate has increased on April 1 2008. The adult rate is now $12.00 per hour before tax. The ‘youth’ rate has been replaced with the ‘new entrant’ rate, meaning that 16 & 17 year olds can enter the workforce at $9.60 per hour until they have worked 200 hours, or been in work 3 months (whichever comes first). After the threshold has been reached they are to be paid the adult rate. (If they are supervising others – the adult rate applies from the beginning). Mobile Accounting Services - Checking IRD assessments and making payment arrangements We are finding that these jobs are taking longer than in previous years as the IRD is struggling to keep up with their work load due to changes in legislation e.g. Kiwisaver, GST/Provisional payment ratio option etc. This unfortunately will result in a cost increase to you for tax management. Penalties From 1 April an employer who pays their PAYE after the due date may incur a penalty of 10% on the unpaid PAYE. If you incur this penalty, it will reduce to 5% if you pay the PAYE owing or enter into an arrangement with IRD within one month of the date printed on the penalty notice. If PAYE remains unpaid you will incur further monthly penalties. The maximum penalty being 150% GST Update IRD have made changes to your GST returns. They are no longer in duplicate so ensure you make a copy of your return for your own records and then send the entire original return with your payment as the bottom tear off slip does not hold enough information for IRD. Penalties from 01/04/08 for non filing of GST returns are $50.00 for those on payments basis and $250.00 for invoice basis. To avoid penalties save as you receive money for GST. Always file your returns and make your payment by the due date, if you are unable to pay, contact IRD and make an instalment arrangement. Family Trusts Are you taking minutes for any significant events? Are you getting financial statements prepared annually? Is your gifting up to date? As a trustee don’t let your trust become a sham - call us for help. Parental Tax Credit Had a baby? Congratulations! You may be entitled to either a Parental Tax Credit if you are a family with a combined income of up to $110,000.00 and 1 child, or Paid Parental Leave if you are a salary/wage earner or self employed. Withholding Tax As an employer of contractors you may be obliged by law to deduct Withholding Tax unless you sight an exemption certificate. This does not apply if a company is the contractor Clients Paying Taxes to Wrong Year Some clients paying tax electronically are entering the wrong year in the period box. Please take care when filling in the year in the period box as this error can make longer delays at IRD.