Have you made the necessary updates to your payroll systems and processes to accommodate the new minimum wage?


As of April 1, the adult minimum wage has increased to $22.70 per hour. The starting-out and training minimum wage rates have also been raised to $18.16 per hour.


Employers who pay their employees on a daily, weekly, fortnightly basis, or through an annual salary must ensure that their employees are paid at least the minimum wage corresponding to their payment basis. Any additional time worked should be compensated at a rate of at least $22.70 per hour.


Maintain comprehensive records


It is essential to keep accurate records of hours worked, wages paid, as well as holiday and sick leave entitlements. These records should provide enough detail to demonstrate compliance with minimum wage requirements. If you have agreements in place with employees regarding accommodations or other benefits, ensure that these agreements are properly documented. Your wage records should reflect the wages payable before any deductions are made for the agreed value of accommodation, goods, or services.


Managing costs


Managing cashflow is an ongoing concern for businesses, and the recent changes may serve as a reminder to review your cashflow plan and cost controls. When facing additional pressures on cashflow, it can be beneficial to reassess your costs. This involves more than simply monitoring expenses. It entails examining all aspects of your business operations to determine if any systems (or the lack thereof) are resulting in unnecessary expenses.


We are here to assist you


If you require guidance or support in navigating these changes, please don’t hesitate to reach out to us. We are available to provide the help you need.

 

Your Outside Team




Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

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