Employer Of Record in New Zealand

New Zealand Country Facts

New Zealand is known for its sweeping natural beauty and as the place where “The Lord of the Rings” series was filmed. It is lesser-known for its cities, which are not densely populated as it only requires 20,000 residents to qualify as a city. To put this into perspective, sheep far outnumber the human population of the whole nation. New Zealand is very young compared to most other countries across the globe and therefore has a lot of potential. It’s made up of two main islands plus hundreds of smaller islands.

The Economy

New Zealand has a highly developed free market and is a founding member of the International Labor Organization. Thus, It is an excellent choice for growing businesses. Most recently, new investments have favored the electronics, information technology, and telecommunication sectors.

The Importance of Small and Medium-sized Companies

SMEs (businesses with 0-49 employees) makeup 99% of all businesses in New Zealand and employ 42.6% of the workforce. New Zealand’s small businesses recovery post-COVID-19 is impressive. SMEs bolster employment as well as the availability of goods and services.

Population Characteristics

New Zealand’s 4.9 million people can boast of a 99% literacy rate. Commonly referred to as Kiwis, the people are known for their friendly and easy-going nature. New Zealand is enjoying an uptick in the people employed in science, research, and technology. This should make for plenty of innovation in the future coming from this small country.

Economic Opportunities

New Zealand regularly ranks high both as a place to do business and for its livability. Furthermore, New Zealand has many natural resources. Natural gas, gold, and coal are some of the most valuable commodities.The government welcomes foreign investors and businesses, offering attractive incentives to encourage the small country to grow and develop into an incredible economy.

Key Sectors of the National Economy

Some of the key sectors of the economy are:

• Agriculture
• Biotechnology
• Information technology
• Wine-making
• Tourism
• Film making

Human Talent New Zealanders are highly literate, with 99% of the population able to read and write. The average amountof time for a student to stay in school in New Zealand is 19 years. Educated workers, students, and entrepreneurs are drawn to this country. Prominent Cities for Business

• Auckland New Zealand’s largest city has the country’s busiest international airport.
• Wellington New Zealand’s capital is its second-largest city. It’s a business hub within the nation and has a vibrant arts scene.
• Christchurch Christchurch’s reconstruction following the devastating 2011 earthquake has earned its recognition as “the place to be” for work, study, and establishing a new business.

Technological Ecosystem

New Zealand’s tech and innovation ecosystem is growing year after year. Tech is New Zealand’s fastest-growing industry; overall, it ranks third in all the nation’s enterprises. Some of the biggest companies in New Zealand are technology based.

Facilities for Foreign Investment

New Zealand keeps tax compliance simple, with zero social security, stamp duty, payroll, estate, or capital gains tax requirements. It’s welcoming to foreign direct investment (FDI) to increase employment. According to New Zealand government data, the United States is New Zealand’s third-largest source of FDI (after Australia and Hong Kong).

Business Culture in New Zealand

• Respect Personal Space A friendly handshake and a smile are all that’s needed in a business setting.
• Keep It Real Kiwis are straight forward so don’t interpret their “straight shooter” frankness as harsh or rude.
• Communicate, Don’t Haggle Although in some countries haggling is one of life’s pleasures, not so in New Zealand. Instead, be upfront, honest, make reasonable requests and be ready to share your reasoning with new work partners.

New Zealand Gastronomy: regional and traditional cuisines

• Hangi The important Maori culture invented this dish which is distinctive for how the food is prepared. Vegetables are combined with any choice of meat; lamb, chicken, beef, or pork. Then, it’s all put in cloth sacks, baskets, and covered with aluminum foil. Then the combo is placed on hot stones in the bottom of a small pit, covered with a wet cloth, and left to cook into a mouthwatering, fall off the bone tender delicacy.
• Kina This is a popular food known as the hedgehog of the sea. It’s actually a type of sea urchin. The meat inside is eaten raw, but mind the spiky exterior! This dish is one of New Zealand’s oldest traditional foods.
• Fish and chips Inspired by the British, New Zealand love their fish and chips. Usually, the fish is kohi or snapper, and along with the chips (french fries), it’s often picked up from little shops, wrapped in paper, and eaten as an on-the-go meal or a picnic on the beach.
• Hokey pokey Kiwis are passionate about ice cream. They eat a traditional version called hokey pokey, which is vanilla ice cream with crunchy honeycomb mixed in

General Highlights

Year	2022
Country	New Zealand
Capital	Wellington
Num. States / Province	16 regions for local government purposes
Principal Cities	Auckland, Wellington, Christchurch
Language	English
Local Currency	New Zealand dollar $
Major Religion	Christianity
Date Format	dd/mm/yyyy
Thousands Separator Format	99,999,999.99
Country Dial Code	+64
Time Zone	NZDT UTC +13 & CHADT UTC +13:45
Population	4.8 million
Border Countries	A group of islands in the Pacific
Continental surface	268,680 km2
Fiscal Year	April 1 – March 31
VAT %	13%
Minimum Wage	$21.30 NZD/hour (approximately $14.62 USD
Taxpayer Identification Number Name in the country	IRD
Current President	Jacinda Kate Laurell Ardern

What you need to know about employing personal in New Zealand:

Laws and Agencies that regulate labor relationships

Laws	Brief Description
The Fair Work Act	The Fair Work Commission governs the Fair Work Act
Inland Revenue Department (IRD)	New Zealand tax code
Social assistance system	Universal and social assistance system Many of New Zealand’s benefits require residence of at least 10 years in country

Key Tax and Labor Authorities

Inland Revenue Department	This is the name of their revenue department
Employment Relations Act 2000 (The ER Act)	Instated after the repealed Employment Contracts Act 1991 (the “ECA”)

Labor Contracts

New Zealand Labour Law	Commonly referred to as “minimum code”
New Zealand Bill of Rights Act 1990	This Act seeks to affirm, protect and promote human rights and fundamental freedoms in New Zealand and to affirm New Zealand’s commitment to the International Covenant on Civil and Political Rights
The International Labor Organization	Founding member
Work Hours	Traditionally 8:30 am to 5 pm with a half hour lunch break Totaling a 40 hour work week

Payroll

Legal Benefits in New Zealand

Minimum Wage	$21.30 NZD/hour (approximately $14.62 USD
Overtime	None required
Christmas Bonus	None required
Accident Compensation Act 2001	The ACC states, “Everyone in New Zealand who works and owns a business has to pay levies. The levies you pay provide cover for you and your employees if someone’s injured. We work with you to help you manage employee injuries, while rewarding you for having a safer workplace.
Vacations or PTO New Zealand Holidays Act	30 days of paid vacation, including national holidays
Leaves of Absence	•       Leaves of Absence Employees are paid for a couple of types of leave: •       Sick leave – Up to 5 days a year (after being employed six consecutive months) •       Bereavement leave – Up to 3 days •       Maternity leave – None unless it’s included in the employment agreement. Instead, the government funds partial salaries for up to 14 weeks.

Employers Contribution or Labor Cost Annual Taxable Income

Over this amount	Not over this amount	Tax % on Excess
$0	$14,000.00	10.5%
$14,000.01	$48,000.00	17.5%
$48,000.01	$70,000.00	30%
$70,000.01 and above		33%

Corporate Tax Rates

Taxable Gross Income	Tax Rate
Flat rate	28%

Public Holidays

Public holidays observed in New Zealand:

Date	Holiday Name
1 January	New Year’s Day
2 January	Day after New Year’s Day
3 & 4 January	New Year Holiday
24 January	Wellington Anniversary Day
31 January	Auckland and Nelson Anniversary Days
6 February	Waitangi Day
7 February	Waitangi Day Holiday
14 March	Taranaki Anniversary Day
21 March	Otago Anniversary Day
Friday before Easter	Good Friday
Monday after Easter	Easter Monday

Termination

Termination of an employment contract.

Type of Termination	Brief Description
Justified Dismissal	If an employee does something which destroys the trust of an employer, or any type of serious misconduct, the employer may terminate their employment.
Unjustified Dismissal	An “unjustifiably” dismissed employee is only considered as such if they file a claim stating why their termination wasn’t fair.
Voluntary Resignation	An employee is allowed to resign any time as long as the employment agreement is met. Which could mean handing in written and receiving a final paycheck.

In New Zealand, severance is called redundancy and is not necessary unless it is part of the employment agreement or contract.