Three60 Consult Logo

Volunteer Employee

Posted on: Nov 24, 2016

If you thought working for food or accommodation was volunteering, think again. By law, anyone working in return for food and accommodation is an employee in accordance with section 6 of the Employment Relations Act 2000.

Under the Act, anyone who works for “hire or reward”, eg food and accommodation, is an employee in terms of the Act, which makes the person who is providing this food and accommodation their employer.

Giving people a feed and a bed for doing odd jobs is common in New Zealand, eg travellers working on farms (commonly known as “WWOOFers” which stands for “World Wide Opportunities on Organic Farms”). But if you’re going to engage in this sort or arrangement, then there are tax implications and employer duties you need to know about.  Business.govt.nz has recently published an article about this issue on their website, and we thought it raised an important issue that was worth sharing.

Before they start

Before anyone can do any work, whether they are being paid them by wages or by providing food and a place to stay, make sure they’re allowed to work here. Only New Zealand citizens and permanent residents — and Australian citizens — can work in New Zealand without a visa. Everyone else needs one, eg a working holiday visa.

Also, volunteers will have to fill out Inland Revenue’s tax code declaration (IR330) and get an IRD number.  Business.govt.nz has also provided a handy “to do” list for those who wish to engage workers in this way:

  • register as an employer
  • get a completed tax code declaration (IR330)
  • check if they are eligible to join KiwiSaver and if they should be automatically enrolled
  • create an employment agreement for a fixed-term or casual employee
  • work out and deduct PAYE from any wages
  • work out the PAYE on the market value of any accommodation you provide, or accommodation allowance you pay them
  • keep records of income and deductions, eg a wage book
  • file employer returns and pay PAYE to Inland Revenue.

This topic may come as a  bit of a surprise to some people, so as always, feel free to contact one of our team members if you’ve got any questions about this.

 

Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.

Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.

Subscribe to Newsletter

Christmas is coming…

Christmas is coming…

Once Labour Day has been [yes, believe it or not it’s this coming Monday], the next public holidays are at Christmas and New Year. It always feels like employers have to put a bit more thought into Christmas and New Year because: there are four public holidays; this is a time that many businesses have their annual closedown period; many employees take their annual leave; some employees don’t have enough leave to cover this period; some employment agreements have special rates for these public holidays; and, let’s face it, it is a busy busy busy time. In the next few weeks, my colleague, Tasneem Begum, and I will be offering a free webinar for those employers who want a bit more information around those tricky calculations for leave at this time of the year. We will also be able to answer the questions you have and the challenges you face with leave during the Christmas/New Year period. You are not alone with the questions you have – Questions we are often asked at this time of the year are about employing staff to cover the busy Christmas period

Read More
One of those weeks: Mental Health Awareness Week 2022

One of those weeks: Mental Health Awareness Week 2022

I have had one of those weeks where I have been in full day mediations virtually every day out of Auckland. What hit me at these mediations is the despair that people find themselves in by the time they arrive at my door. With varying degrees, all of these mediations had people in deep emotional turmoil. Anguish, frustration, anger and deep sadness, to the point where I had to pause to ensure the people were in the right space to make good decisions for themselves.

Read More
What the heck is going on with pay?

What the heck is going on with pay?

While we are conscious of the impact that inflation is having on wage and salary conversations, there are four other levers that have been, and are being, used to bring about fundamental change and significant uplift to pay in New Zealand. The Government is using these levers to drive increases in pay at various levels in ways that we may not be conscious of. However, when brought together as a single thread, they are having a big impact.

Read More
PREV NEXT