The problem with paying staff cash
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