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John Brosnan explains why you should never pay anyone under the table, under any circumstance. The risks are never worth it

Rural News
John Brosnan explains why you should never pay anyone under the table, under any circumstance. The risks are never worth it

By John Brosnan*

Finding good relief staff can be difficult, and once you have found someone that you think will be great they then ask you to pay them cash (with no paper work), what do you do?

You should refuse this request, even if it means losing them and having to start the process again of finding good help.

The fact is you must record and pay relief and casual staff exactly the same way as you would any other employee in your payroll system. So they have to be in your system and have PAYE deducted and holiday pay paid (for relief, casual staff)

Should your business be looked at by either MBIE or IRD, your employment records and practices need to be solid and able to withstand scrutiny. It is essential, as with all things in employment, having the correct processes in place.

Recent laws have only made having accurate records of employees work hours (timesheets), payrolls, leave and holidays more stringent and these rules apply to all staff whether fulltime, part time or casual.

It may be tempting to cut corners especially with temporary relief staff, and especially when you think they are going to be great but it is simply not worth it, employment requirements are requirements not “nice to haves”.

By putting your casual, relief staff on your PAYE system means you will also be able to claim their wages as an expense. There are great software programs available to help you keep a clear picture of, timekeeping, rostered days off, comply with minimum wage, leave owed and taken.


John Brosnan is a business development adviser at CooperAitken Ltd, accountants in Morrinsville and Matamata. He is running seminars on these issues. You can contact him here

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