MBS Advisors Newsletter

Update from MBS Advisors

New Zealand’s unemployment rate has increased slightly to 5.2% for the quarter ended June 2025 from 5.1% for the quarter ended March 2025. More Kiwis are now employed in part-time work which means they are working less than 30 hours per week. The level of those unemployed is expected to fall over the rest of 2025.

If you are considering employing staff, ensure you have a robust process in place. After meeting potential employees, check not only personal references, but include police checks and a pre-employment questionnaire. A pre-employment questionnaire allows you to gather information on job applicants which will help you identify physical and medical issues that may affect the prospective employee’s effectiveness in their role.

Contacting personal referees who have worked with the prospective employee is a must, ensuring referees provided have worked with the prospective employee recently. There is also a myriad of online resources that can help you with the employment process and you need to ensure you get an individual employment agreement (IEA) signed by both parties.

The penalty for not having an IEA can reach $20,000, but we currently see settlements in the vicinity of $10,000. Usually, when settling out of court, the value of the settlement will be dependent on whether there was an IEA in place. Let MBS Advisors assist with the employment process to help maintain compliance.

Tony

Quick guide to employment basics - rest breaks and annual leave

Managing your team involves understanding your legal obligations. Here’s a rundown of some of the key employment responsibilities under New Zealand law.

Back to basics

Under New Zealand law, employers must:

Give all employees a written employment agreement or contract.
Pay employees at least the minimum wage for all the hours they work.
Pay employees in cash (money) unless they have agreed to a form of direct credit.
Do not deduct money out of employees’ wages unless the law allows it (such as for student loan payments) or an employee gives written authorisation.
Provide a workplace that is healthy, safe, and free from discrimination and bullying.
Accept that employees can resign at any time by notifying you they are leaving and working out the notice period stated in their contracts.

Rest breaks

Employees need regular rest and meal breaks. For people working eight hours or longer, two 10-minute paid breaks and an unpaid 30-minute lunch break are required. People working six hours need one 10-minute break and a 30-minute lunch break.

Annual leave

Staff are entitled to a minimum four weeks' paid annual leave after they have worked for you for 12 months. They are also allowed 12 paid public holidays (excluding some regional anniversaries) to the extent they fall on days they normally work.

The government has announced plans to move to an accrual system for annual leave in changes to the Holidays Act 2003. Read more about the government’s proposals by clicking the link below.

We'll keep you posted

Holidays Act reform

Is your payroll process up to date?

Employers who pay their employees by the day, week, or fortnight need to make sure workers are paid at least the minimum wage appropriate to the basis on which they are paid. Additional hours worked in excess of an 8-hour day, or 40-hour week or 80-hour fortnight (as applicable) must be paid at least the minimum hourly rate.

The adult minimum wage increased to $23.50 per hour on 1 April 2025.
The starting-out and training minimum wage rates have also gone up to $18.80 per hour as of 1 April 2025.

Keep systematic records

Check hours worked for each pay period to make sure employees are paid at least the minimum wage appropriate to the basis on which they are paid. (The fortnightly rate applies to salaried employees

You are required to keep records for wages and holidays to meet your requirements under the Holidays Act 2003 and the Employment Relations Act 2000.

Records should be accurate, up-to-date, and easily accessible. The law requires detailed wages and time records, and you must keep records in sufficient detail to show compliance with minimum entitlements such as minimum wage.

Keep in mind

Monitor hours worked – Ensure employees receive at least the minimum wage based on their employment type (such as weekly, fortnightly).
Keep accurate records – Maintain detailed records of wages, holiday pay, overtime, and additional payments for the entire year.
Keep written employment agreements – All employees must have a written employment agreement that complies with current employment law.

Regular review of these areas can help prevent legal risks and ensure fair treatment of employees.

If you would like to discuss any payroll application options like PaySauce and Xero - give us a call to discuss how you can better administer payroll for your employees.

Let us know if you'd like more information.

What to know about public holidays

Following the introduction of Matariki in 2022, employees in New Zealand get 12 public holidays a year. But what happens if your business needs to stay open on a national holiday?

When employees work all or part of a public holiday, businesses must:

Pay staff at least time and a half for the hours they work, and
If the day is one they would normally have worked, give them an alternative holiday or a day in lieu.

You can only require a team member to work on a public holiday if it falls on a day they would usually be working and their employment agreement requires them to work the public holiday.

If you have any questions about annual leave and public holiday entitlements, please get in touch.

MBS Update

This newsletter we introduce two new staff members and say farewell to two also.

Hello to

Toni Lines

Toni originally from the beautiful Bay of Plenty, comes to our firm from an audit background. When not at work Toni can be found fishing with her family or crafting Macrame! Toni joins Tony's team.

Rachel Basi

Rachel is a Hamilton local, finishing off her accounting degree at University of Waikato. She's with us two days a week presently and will be full time towards the end of this year. We have heard that she's a bit of a F1 fan having been to the Melbourne Grand Prix a few times trying to catch a glimpse of her favourite driver Charles Leclerc. Rachel has joined Nigel's team.

Farewell to

Deena

Deena departed early June after almost 10 years at MBS Advisors, to travel with her partner Tosch. They are currently in America, and if social media is anything to go by, they are following their passion for music attending every concert they can!

Deepa

Deepa our Legal executive is departing early August for the Hamilton City Council after being with us for 4 years. She is not far from finishing her Law degree and will be moving on to the next stage in her career.

Important Dates

PAYE period ended 31 July 2025 due 20 August 2025
NRWT period ended 31 July 2025 due 20 August 2025
RWT (IPS)period ended 31 July 2025 due 20 August 2025
Dividend Withholding Tax period ended ended 31 July 2025 due 20 August 2025
GST period ended 31 July 2025 due 28 August 2025
Provisional Tax March balance date due 28 August 2025

If you have any questions related to these or any other tax dates please give us a call and a member of the team will be happy to help.

Xero Price Change

From 1 September 2025, the price of Xero Grow, Comprehensive and Ultimate plans will increase in New Zealand. Please note all prices are exclusive of GST.

Ignite - this plan will remain unchanged at $35 per month but will allow for payroll at $4 per employee per month

Grow - Will increase to $83 per month which currently includes 1 employee, every additional employee will be charged at $4 per employee per month

Comprehensive - Will increase to $110 per month which currently includes up to 5 employees, every additional employee above that will be charged at $4 per employee per month

Ultimate - Will increase to $125 per month, this currently includes up to 10 employees. Additional employees will be charged at $1 per employee per month.

If you have queries about the plan you are on or would like to discuss a more suitable option, drop is a line, we are here to help.