Kāpiti businesses to be impacted by tax changes

Kāpiti has hundreds of small businesses with contractor arrangements and new laws will impact on how tax deductions will now apply.

A law change means all contractors can now have tax deducted from their pay at a flat rate of their choosing, if their payer agrees.

Contractors hired by a recruitment agency, or other labour hire business, must have tax deducted from their pay.

If you choose to or must have tax deducted from your pay, fill out the new tax rate notification form (IR330C) and give it to your payer. New Zealand tax residents can pick any rate from 10% up to 100%.

For more on this see: https://www.business.govt.nz/news/contractor-tax-changes-how-to-get-it-right

no