How do you pay students?  What about Tax, Public Holidays and Holiday Pay?

 

How do you pay students?

A student is just like any other employee and should be paid in the same manner. This means ‘putting them through the books’ and deducting PAYE for them. It’s a good idea to let the student know when they can be expected to be paid (eg. If it’s a fortnightly pay run). If you are a domestic householder, using a student for odd jobs in the home, they are responsible for paying their own tax. Again, you should let them know when they can be expected to be paid (usually at the end of the day), and whether it’s cash or cheque.

 

What about Holiday Pay arrangements?

Is it in each pay or at the end of the job? If you are paying the student an hourly rate that has the holiday pay included in it, you must state this when you list your job. To calculate this, add 8% to the hourly rate. This is referred to as 'pay-as-you-go. The Holidays Act allows 'pay-as-you-go'holiday pay arrangements in two circumstances:
1. Employees on genuine fixed-term agreements of less than 12 months - this reflects the fact that these employees are not expected to reach the date on which they would normally qualify for annual holidays
2. Employees with a work pattern that is intermittent or irregular (genuine casual work) - this reflects the fact that the employee's employment pattern may mean it is not meaningful or practicable to attempt to provide them with four weeks paid annual holidays.
Employees paid on a pay-as-you-go basis do not later become entitled to time off for annual holidays. If you require further information then the Labour Department website www.dol.govt.nz is a really good resource.

What about working Public Holidays?

Under the Holidays Act (as amended in October 2004) if an employee works on any public holiday, that work now attracts a minimum payment time of time and a half for the time they actually work on a public holiday. Employment agreements however, may already provide for time and a half or better If you require further information then the Labour Department website www.dol.govt.nz is a really good resource.