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Pātaua Outdoor Education & Recreation Trust (POERT) is a charitable trust offering a self-catering school camp facility outside the classroom, primarily to educational organisations and groups wanting to experience Northland’s east coast.

The Christmas season can create payroll challenges, but understanding the rules can help you stay compliant. Annual Leave: By law, employees are entitled to four weeks of paid leave per year. To avoid last-minute staffing problems, set clear deadlines for leave requests. Holiday Pay : Employees must be paid for public holidays that fall on their regular workdays. Keeping up-to-date employee records and rosters ensures accurate payment. Christmas Closures : Plan ahead for any business shutdowns. You must provide at least 14 days' notice before a closure. If an employee doesn’t have enough leave, they must be paid 8% of their gross earnings since their start date or their last leave entitlement, minus any leave paid in advance if agreed upon. Cashing Up Leave : If it’s part of the agreement or you choose to allow it, employees may cash up to one week of annual leave each year. However, you cannot pressure them into doing so. Casual Workers : Casual employees should receive an additional 8% on top of their earnings instead of accruing leave, and this must be clearly shown on their pay slips. With careful planning, you can keep payroll running smoothly, allowing both you and your team to enjoy a stress-free holiday season. Feel free to reach out if you need any assistance or clarification.

Managing staff involves more than just overseeing work; it also includes managing holidays and annual leave effectively. As an employer, it's your responsibility to maintain accurate, up-to-date records of your employees' time off.

Payroll mistakes can be expensive. They not only cost your business money, but can also lead to fines or penalties. While some errors are unavoidable, many can be easily prevented with a little attention to detail. Here’s a look at 10 common payroll mistakes and how to avoid them: 1. Misclassifying employees in the payroll system How you classify your employees in your payroll system directly impacts their tax rates and entitlements. If you get it wrong, you could end up deducting the wrong amounts or even owe your employees wages they should have been paid. For example, misclassifying an employee as exempt from overtime could mean paying them back pay for overtime they were entitled to. To avoid this, make sure each employee’s details are set up correctly in your payroll system. Double-check that their classification matches their employment contract and that it complies with any specific rules in your industry. Also, remember that contractors have different tax rules to regular employees, so be sure they’re categorised correctly. 2. Using incorrect tax rates One of the most common payroll errors is applying the wrong tax code or rate. Employees usually provide their tax details, but you should never just assume they’re correct. Mistakes can happen if tax codes aren’t updated, or if an employee forgets to notify you about a change. To reduce the risk of errors, make it part of your process to confirm tax codes when employees first start and periodically check that the information is up to date. 3. Missing payroll deadlines Payroll might seem like a simple task, but once you factor in hours worked, leave, overtime, and deductions, it can get complicated. Rushing to meet deadlines can lead to mistakes, and paying employees late can cause frustration and even legal issues. To stay on top of it, ensure all your employee details (like name, address, tax code, bank info, etc.) are entered correctly and well in advance. Having a clear process to track hours worked and using payroll software that automates payment, and payslip generation, can also make life much easier. 4. Miscalculating or failing to pay overtime Although there’s no official overtime legislation in New Zealand, many businesses agree to an overtime rate with their employees. If you’re paying overtime, it’s important to make sure your payroll system automatically calculates it based on the agreed rate. For example, if an employee works over a certain number of hours in a week, the system should apply an overtime rate to those extra hours to ensure they’re paid correctly. 5. Failing to keep payroll records for 7 years In New Zealand, businesses must keep payroll records for at least seven years. This includes details like how much you pay employees, the deductions you take out, and any contributions you make. Even if you’re a sole trader, keeping detailed records is a must. If the IRD audits your business, you’ll need to show exactly how much you’ve paid your employees, and how taxes were handled. If you don’t have complete records, you could face fines - up to $20,000 for multiple breaches over three months. By staying on top of these common payroll mistakes, you’ll save your business time, money, and potential headaches. A little planning and organisation can go a long way in ensuring you stay compliant, and keep your employees happy.

As we head into the Christmas rush and you start to employ staff for summer, it is important to make sure you’re treating your employees fairly and according to the law. This also applies to any seasonal staff you might take on at other times. Here are three tips to help you stay on the right side of the law. TIP 1: All employees must have a signed employment agreement before they start work. Regardless of how long you’re employing a staff member for, they MUST have a signed employment agreement before they start work. The contract must include certain clauses, including the type of employment (fixed-term, casual, or permanent), duties, pay, and other benefits, the place and hours of work, how problems can be resolved, etc. Make sure to give your new employees adequate time (3-5 days) to read, understand, and ask questions before they sign the contract. If you’re not sure what to include in an employment agreement, use templates from a New Zealand employment advisory service or an employment agreement builder to help you put together a legal employment contract. Federated Farmers also have an array of employment agreements which can be bought online. These agreements cover what you must do by law, and sets out common mistakes made by employers and how to avoid them. TIP 2: Make sure you’ve included the minimum employee rights. All employees have minimum rights set out in law. These minimum rights include: Minimum wage: Employees must be paid at least the minimum wage; the current adult minimum rate is $23.15 per hour. Public holidays: Unless written in the contract, employees don’t have to work on public holidays. If they work on a public holiday, they must be paid time and a half, plus if it is a normal workday for them, they also get an alternative day off. Health and safety: Employers must provide appropriate training and information for workers so that they can work safely. TIP 3: Make sure the hours your employees work are following the rules One of the common mistakes is that any set up or tidying up doesn’t need to be paid. All work activities must be paid for, regardless of their time. This includes before and/or after-hours tasks, such as team meetings, opening and closing the business, cleaning and tidying up, on-the-job training, and product familiarisation. You also can’t offer zero work hours and expect employees to be available ,without reasonable compensation. The work hours must include proper rest and meal breaks. For example, an employee who works an eight-hour shift gets two paid rest breaks and one unpaid meal break. If you need advice or support with creating a new employment agreement or with staff induction, let us know – we’re happy to help.

It can be frustrating when you’ve done the work but you haven’t been paid. Invoices being paid late is going to happen, but managing unpaid invoices is crucial to sustain your business’s long-term financial health. Here are some tips on chasing late payers. 1. Write a payment request letter or email When you first notice your payment is overdue, send a polite payment request letter or email. In most cases this will be enough to prompt a customer to make a payment. This allows the customers to pay if they’ve inadvertently overlooked paying the invoice. Your payment request letter/email should include: a brief reminder of the outstanding invoice; and the specific invoice number, due date, and amount owed. Politely ask when you can expect payment, and offer a brief reminder of your payment terms. 2. Send an overdue invoice/statement of account If you don’t get a response from step number 1, the next step is to send an overdue invoice. This is the original invoice but with an ‘overdue’ stamp on it. You can attach this to a follow-up email. You can do this automatically by setting up payment reminders in your accounting software. If you have multiple unpaid invoices with the same customer, you could send them a statement of accounts which summarises all of the outstanding payments. 3. Make the phone call and prepare to negotiate If you haven’t had a response to your emails, it’s time to pick up the phone and give the customer a call. Chasing unpaid invoices by phone can tend to yield better results. Make sure you mention the unpaid invoice numbers, ask when you can expect to receive payment, and don’t hang up until they’ve given you a payment date. You may need to negotiate when you’ll receive payment. For example, if they agree to pay the outstanding invoices by a certain date, you can agree to this change but put a hold on carrying out any more work/supplying goods until payment is received. 4. Charge a late payment fee Charging a late payment fee can provide an incentive for customers to pay on time. However, any late-fee policy you use should be clearly communicated upfront in your payment terms when you agree to carry out work for your customer. This can be either a percentage of the outstanding amount, or a set late payment fee. If they don’t pay on time, notify them that the late-fee has now been added but if they pay within the next 48 hours, you’ll waive the late payment fee. 5. Cut them off until outstanding invoices are paid If a customer isn’t paying you or responding to your messages, it’s time to cut them off. Let them know that until you receive full payment for the outstanding invoices, you won’t continue any work for them. Still no payment? If none of these tips work, it’s time to call in the big guns – a debt collector or lawyer. It’s best to exhaust all other strategies before doing this as it may end the relationship with your customer. Debt collectors specialise in recovering unpaid invoices but take a cut of what you’re owed, typically around 25%, so you’ll need to factor that into the decision. If you don’t have any luck with the debt collector, your last resort is to consult with a lawyer. Taking legal action is complex, so it’s best to consult a specialist lawyer who has experience in professional invoice chasing. 

You’ve built your business up so it’s successful and giving you a healthy return on investment. The value and equity that’s locked up in your business is your nest egg. It’s the asset that will power your future retirement, buy your family that new home, or the unrealised capital that will allow you to invest, begin new enterprises, or fund your lifestyle. But if the value in your business drops, this can undermine future plans and potentially leave you without the capital to take these next steps. You’re thinking about the next steps, whether it’s retirement or moving into a new business venture, but are you inadvertently damaging the value of your business? Here are five potential threats that could be damaging the value of your business. 1. Relying on the founder limits growth A modern business should be systemised and scalable. If you, as the founder, are still integral to your everyday operations, this blocks innovation and limits the potential growth of the business. Consider what you can delegate to others and switch your focus to growing the business – work ON the business rather than IN the business. 2. Using outdated or inefficient equipment or technology If you’re using outdated or inefficient equipment, technology or software, you’re holding your business back by reducing operational efficiency and increasing running costs, which makes your business less competitive in the marketplace. If you haven’t done a review of your systems, equipment and technology, now would be a good time. 3. Failing to keep pace with the market Keep up with what’s going on in your industry as things can change quickly. New competitors, new products, and changing customer behaviour can leave you lagging behind. It might be time to survey your customers to find out what they like and dislike, and where improvements can be made. 4. Bad reputation or brand awareness A bad reputation can damage your brand which in turn affects sales. Have you checked lately how satisfied your customers are? Have any of your employees exhibited bad behaviour or questionable sales tactics. It’s easier to keep a good reputation rather than trying to fix a bad one. 5. Poor financial health If you are considering selling the business, potential buyers will want to see that the business is in good financial health. A high debt-to-equity ratio can make a business more vulnerable to economic downturns, and poor cash flow will hinder your ability to invest in growth, pay bills, and meet your financial obligations. These are all red flags for investors and potential buyers. Next steps For the business to maintain value, it needs to keep up with a changing market, adopt new technologies, and make solid plans for growth. If you’re considering selling up for retirement or moving onto your next business, give us a call and we can help you with the next steps, including stabilising the value of your company.

Financial management can be overwhelming, especially if you’re new to running a business. When you’re operating and managing a small business, you have a finite pot of cash to work with. Because of this, it’s incredibly important to manage your cash well, and to have clear budgets and spending limits for every area of your business operations. It’s impossible to run a successful business without having a tight rein over your expenditure. Sales may be bringing in healthy revenues, but the income and profits you’re generating can quickly be eaten up if you’re overspending on operational costs, marketing campaigns, staff payroll, or investments in new hardware and software. Let’s take a look at why budgeting is such a vital part of your financial management, and what you can do to keep your company on budget and in a positive cash flow position. Here’s three ways to stay in control of your business budgeting. 1. Embrace the power of budgeting A well-crafted business budget gives you the foundations to become a financially healthy and successful business that’s in control of its spending. If you aren’t already running cash flow forecasts, a simple breakdown of income and expenses in an Excel spreadsheet can be a great starting point. i) Track your projected sales, so you understand your future revenue numbers and have a solid projection for your income over the course of the year, or budget period. ii) Calculate your costs, including fixed costs like rent and utilities, and variable costs like inventory and marketing. This gives you an understanding of your total expenditure. Don't forget to factor in business taxes and contingency funds to cover emergencies. iii) Set clear budgets for the coming period’s spending, based on the total income you’ve predicted, and the total fixed and variable costs you’ve estimated. Always leave some wriggle room to account for inflation and changing costs. iv) Regularly review your budget, so the document is always evolving. Reviewing and updating your budget helps you stay on track, identify areas for cost-cutting, and make informed decisions about resource allocation. Remember, a budget is a living document, so adapt it as your business evolves. 2. Track your budgets, income, and spending Setting the budget isn’t the end of the process. It’s important to track all income and expenses, and to update your budget in line with the current health of your business finances. Using the tools available to you in your accounting software can help you record your incoming and outgoing transactions in real time, so you can work with the most up-to-date numbers and financial data when reviewing and reworking your budget. To improve your tracking: Use codes to categorise your expenses in your accounting software. This makes it easy to categorise each expense as it’s incurred, and it’s then simple to review your financial reports and to analyse your spending patterns. Review your spending – check your spending against each code and see where budgets are on track, or where there’s overspending that’s threatening your budget. Are there subscriptions you can cancel? Or could you renegotiate rates with your suppliers? Plan for seasonal trends and patterns – tracking your income and expenditure helps you to spot, predict, and plan for the financial ups and down you’ll experience over the year. The more you understand your cash flow, the better equipped you are to stay on budget, make solid strategic financial decisions, and avoid unexpected shortfalls. 3. Forecast for the future: don't just track the past Basing your budget and financial strategy on historic data is a great foundation stone. But you can also use this data to project the data forwards in time and create useful cash flow forecasts. For example, you can: Get clear cash flow forecasts – based on your historical sales trends and projected expenses, you can quickly estimate your future cash flow. Having this view of your future cash position is extremely helpful when setting out your budget for the period. Plan out your budgets and cash management – with forecasts at your fingertips, you can plan for seasonal fluctuations, identify potential funding needs, and make informed decisions about the short, medium, and long-term strategy of the business. Be ahead of the curve – with solid budgets, forecasts, and a great overview of your finances, you can be more in control as a business owner. Whatever the market throws at you, you’re better prepared, agile, and ready to respond. Talk to Us We can assist you with getting on top of your budgeting. We can streamline your record-keeping, bookkeeping, and financial reporting, as well as give guidance on budgeting, forecasting, and financial management to ensure your cash flow and budgets are always looking positive and healthy.

Running payroll can be tedious and is often a thankless task. So if you’re not already using Payroll software, now might be the time to start! Payroll software simplifies payroll to just a few clicks which saves you time, admin and hassle by calculating gross wages, deductions and entitlements for you. Benefits of payroll software Some of the benefits of using payroll software include: 1. Time tracking To accurately calculate wages, employers must be able to record the working hours and any overtime. Payroll software that allows you (or your employees) to record their working hours and overtime means that wage calculations will be accurate. 2. Calculates employee deductions Employers must process payroll deductions, including: KiwiSaver PAYE student loan repayments insurance premiums mandatory deductions, like child support payments. Payroll software can manage all these deductions and calculate the employees’ correct net or “take home” pay. 3. Complies with payroll regulations The IRD requires employers to keep payroll records for every employee and contractor. As an employer, you need to keep comprehensive records of wages, time worked, leave and other details. Payroll software generates and stores these records for you. 4. Provides employees with pay slips and keeps employee data secure. With payroll software you can send your employees their payslips and then also send this information onto the IRD at the same time you run your payroll. The best payroll management systems use state-of-the-art security to protect sensitive employee data. They can run updates for you, automate your account security and remediation activities, and inform you immediately about any suspicious or fraudulent activity they detect. 5. Provides anywhere access The best online payroll management systems provide 24/7 access so that you can manage payroll queries on the go. If you’re not already using a payroll system, it can be a bit of a daunting task to know which payroll software to use and what to look for. When you’re comparing payroll software systems, here are some additional things to consider: 1. Enables employee self-service Some cloud-based payroll systems come with an extra benefit: employee self-service. For instance, employees can submit their bank, tax and KiwiSaver fund details through a secure self-service portal. Employee self-service takes a heap of work off your shoulders and empowers employees to manage their details. 2. Integrates with your existing accounting software Look for payroll management software that can integrate with your existing accounting software as well as any other software you use such as onboarding, rostering, leave requests and time tracking, so you can operate more efficiently, reduce repetitive data entry and prevent errors. 3. Provides analytics and reporting Payroll software drives better decision-making with comprehensive analytics and accurate reporting that you can control and customise. You can access key information online, including leave, personal info, payslips and timesheets, whenever and wherever you want. If you need help deciding on the right payroll software for you, get in touch, we’re happy to help you find one that works for you.