Merry Christmas and Prosperous New Year!
Office hours over the holiday period   We will be closing on Wednesday 23rd December 2009 and reopening on Monday 11 January 2010 Vaughan, Dave, Sarah, Neil and Marie would like to thank everyone for their support during the last year and we wish you and all your families a Merry Christmas and happy New Year.  We hope you enjoy a relaxing and festive holiday and prosperous 2009 ! Official Statutory Holidays Christmas Day (Friday 25 December) & Boxing Day (Saturday 26 December recognised on Monday 28 December) New Years Day (Friday 1 January 2010) & Day after New Years Day (Saturday 2 January recognised on Monday 4 January 2010) Calculators and Key Tax Dates Need a calculator or want to know key tax dates?  Visit our website www.walshassociates.co.nz or click on one of the links below.  income tax calculator?  mortgage calculator?  kiwisaver calculator?  GST, FBT & RWT  provisional tax  PAYE Provisional Tax Don’t spend too much on Christmas as the second payment of Provisional Tax for the 2009/2010 year is due on the 15 January 2010. For other important tax dates go to our website www.walshassociates.co.nz				Well it’s almost Christmas again and this year we thought we would do something different and write this newsletter as if it was coming from a deep dark cave where only Scrooge himself goes, although you may fondly recognise them as the IRD.   Christmas is not for fun and family entertainment, it is an opportunity for us (the IRD) to build up our ever falling tax revenues and catch you, the poor unsuspecting taxpayer when you least expect it !!!   So lets look at one of our favourites…..Entertainment Tax   There are all sorts of rules but to cut to the chase because time is represented by falling tax revenues, provisions operate that only 50.0% of what you spend can only be claimed by way of a tax deduction. There are some exemptions but these are unlikely to operate for Christmas functions, unless you and your employees elect to have your Christmas function outside New Zealand somewhere.   So What about the Following   Staff Christmas Party   So you think you might lash out and have a real boomer Christmas party. Well you can  BUT only 50.0% of what you spend on food, drink, music, hire of glassware etc will be deductible, the other 50.0% is not deductible for tax purposes and it doesn't matter whether the function is held on the actual business premise or in somebodies back shed, the rules are the same.   Christmas Lunch / Dinner for Colleagues   Well with the recession it has been a tough year, so you thing you might entertain your staff with lunch at the local restaurant? Tough, same rules apply; only 50.0% deductible.   Gift for a Staff Member / Colleague   A gift to any staff member will be caught by FBT however, the gift to a colleague which isn’t food or beverage will generally be deductible.   FBT Implications   The $200.00 exemption per employee per quarter or $15,000 per year only applies to gifts and prizes and subsidized or discounted good and services. Motor vehicles, insurance subsidised transport or low interest loans are all caught by the FBT regime.   Cash Bonuses For Staff   So you think that entertainment might becoming difficult or not have the deductible consequences you first thought, so you think I will pay my employees a bonus. These are also taxable to the employee and not only that but are taxed at the extra emolument rate which is:    14.2 cents up to $14,000 pa  22.7 cents from $14,001 to $48,000 pa  34.7 cents from $48,000 to 70,000 pa   If you have any further questions, visit our website www.walshassociates.co.nz and make use of our E-smart question and answer section. Official Statutory Holidays These are:  Christmas Day (25 December) & Saturday 26 December (recognised on Monday 28 December)  New Years Day (1 January 2010) & Saturday 2 January (recognised on Monday 4 January 2010)   All employees who take leave over this period are entitled to be paid in full for each of those days prior to going on leave.   If you ask an employee to work on any of these days then they will be entitled to 1.5 times per ordinary pay plus a day in lieu. Part time employees who regularly work on the same day as Public Holidays are entitled to be paid for those days in relation to the number of hours they would normally work.