The prob­lem with pay­ing staff cash

Matamata Chronicle - - Out & About -

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

You should refuse, even if it means los­ing them and hav­ing to start the process again.

You must record and pay relief and ca­sual staff ex­actly the same way as you would any other em­ploy­ees in your pay­roll. They have to be in your sys­tem and have PAYE de­ducted and hol­i­day pay paid.

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, pay­rolls, leave and hol­i­days more strin­gent and th­ese rules ap­ply to all staff

It may be tempt­ing to cut cor­ners es­pe­cially when you think they are go­ing to be great but it is sim­ply not worth it, em­ploy­ment re­quire­ments are re­quire­ments.

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, Hu­man ad­vi­sor at Coop­erAitken Ac­coun­tants

John Bros­nan, hu­man ad­vi­sor at Coop­erAitken Ac­coun­tants.

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