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EOFY checklist for business owners
The end of financial year in New Zealand is one of the busiest times of year for most businesses – and it takes the right resources to get organised well ahead of time.
We’ve put together a handy EOFY checklist to help you make sure you’re meeting all your obligations when tax time rolls around.
Reconcile your payroll
Do a pre-tax year-end payroll reconciliation to make sure your actual payroll transactions align with what’s recorded in your payroll register. Also make sure your PAYE deductions are accurate for all staff, including deductions needed for student loan repayments, child support, or any benefits or bonuses.
If you have staff employed in a superannuation scheme like KiwiSaver, check to make sure all your employer contributions are up-to-date before the end of the financial year and the correct amount of employer superannuation contribution tax (ESCT) has been deducted.
Check staff salaries and awards
Review the wages of all your staff members and ensure that they are in line with relevant NZ awards and any other statutory requirements. Underpayments or incorrect payments could see you liable for penalties.
Consider end-of-year business purchases
Although claiming business expenses won’t necessarily equal a big tax return, it can help lessen your taxable income and, therefore, lower your tax bill. So, if you’re planning to invest in equipment or other resources, keep in mind that it could be wise to do so before the end of the financial year.
Update your insurance policies
If your circumstances have changed at all over the past year, remember that you may need to take out additional or different insurance to ensure you and your workers are appropriately covered. Also check that your workers’ compensation coverage is up to date, if applicable.
Complete your relevant business and expenses summaries
Depending on the structure of business for tax purposes, you may need to fill in and submit additional forms along with your business income tax return. These could include a financial statements summary, a schedule of business income, or you can attach a copy of your accounts.
Hire contractors to support you at the end of the financial year
EOFY is a hectic time for most businesses. Consider hiring contractors towards the end of the financial year to make sure you’re meeting your tax obligations and have the paperwork you need organised on time. The investment in additional staff will help ensure your business is as tax-efficient as possible and could save you money in the long term.
READ MORE: How to get the most out of contractors