Yay! It’s holiday time. (Anyone who’s read my earlier blogs knows I love holidays.) We get three weeks to be with family, rest, and recover from a busy year. Accentuated by the very busy last few weeks as we push to get everything finished by the Christmas shut down; the scramble to get all the shopping done; and getting everyone together for the big day.
Finding it all a bit stressful? That’s not surprising as it’s a busy and expensive time for employers. There are the four Christmas and New Year statutory holidays to pay for, followed soon after by anniversary day, then Waitangi Day a few weeks later. That’s six statutory days within seven weeks!
Also, some businesses close down and pay out all leave to staff at once, particularly hourly workers. And then, add the fact that if you shut down like we do, no-one’s working and generating any income!
Oh and there’s the GST and provisional tax payments due in January to fund as well – so an huge drain on cash flow.
Do any of these come as a cash shock to you and your business? If the answer is yes, perhaps your new year’s resolution should be to talk to us about helping prepare a budget and cash flow forecast for next year so you can enjoy that well earned break.
A quick reminder on the statutory day pay obligations: If someone would normally work on the day the holiday falls you have to pay them for it. If your business is open on the statutory day and your employee works on that day you have to pay them time and a half and give them a day in lieu. If you want help working out any of your holiday pay obligations give our bookkeepers a call, they does the payrolls for some of our clients and comes across all of these situations.
Have a great Christmas and we look forward to working with you in 2018.