Forum Discussion

CellarbratRiv's avatar
CellarbratRiv
User
9 months ago
Solved

Employee leaving country continuing to work remotely - how manage employee card and tax?

One of our staff is heading to NZ to live but will continue to work for us remotely.   I have looked online and discovered due to the reciprocal relationship between the governments the PAYGW in Au...
Foreign Resident staff
Remote staff wages
  • Earl_HD's avatar
    Earl_HD
    9 months ago

    Hi CellarbratRiv.

    Thank you so much for your post and welcome to the Community Forum! I'm sorry to hear about the issues you've been facing. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response. To address your inquiry, I recommend consulting with a tax professional or accountant, or seeking legal advice to ensure full compliance. However, here are some fundamental details to consider.

    Managing an employee who relocates and continues to work remotely from there in MYOB involves several considerations. Since tax regulations can be complex, it's essential to follow proper procedures to ensure compliance. 
     

    Update Employee Details:

    • Update the employee's address and employment details in MYOB to reflect their new location in New Zealand.

    Tax Residency Determination:

    • Confirm the employee's tax residency status. Since they will be residing and working in New Zealand, they are likely considered a tax resident of New Zealand and should declare their foreign income there.

    PAYG Withholding:

    • You should change the PAYG Withholding tax to zero for this employee. This indicates that no tax should be withheld in Australia as they are no longer an Australian resident for tax purposes.

    TFN Declaration:

    • If the employee has previously completed a TFN (Tax File Number) declaration for Australian tax purposes, they may need to complete a new declaration or update their details to reflect their new tax status as a non-resident.

    Feel free to post again, we're happy to help.
    Regards,
    Earl

Earl_HD's avatar
Earl_HD
MYOB Moderator

Hi CellarbratRiv.

Thank you so much for your post and welcome to the Community Forum! I'm sorry to hear about the issues you've been facing. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response. To address your inquiry, I recommend consulting with a tax professional or accountant, or seeking legal advice to ensure full compliance. However, here are some fundamental details to consider.

Managing an employee who relocates and continues to work remotely from there in MYOB involves several considerations. Since tax regulations can be complex, it's essential to follow proper procedures to ensure compliance. 
 

Update Employee Details:

  • Update the employee's address and employment details in MYOB to reflect their new location in New Zealand.

Tax Residency Determination:

  • Confirm the employee's tax residency status. Since they will be residing and working in New Zealand, they are likely considered a tax resident of New Zealand and should declare their foreign income there.

PAYG Withholding:

  • You should change the PAYG Withholding tax to zero for this employee. This indicates that no tax should be withheld in Australia as they are no longer an Australian resident for tax purposes.

TFN Declaration:

  • If the employee has previously completed a TFN (Tax File Number) declaration for Australian tax purposes, they may need to complete a new declaration or update their details to reflect their new tax status as a non-resident.

Feel free to post again, we're happy to help.
Regards,
Earl

lmb1707's avatar
lmb1707
Partner
5 months ago

Hi

 

We are about to onboard an employee who lives in NZ.  All the work he will complete is NZ based. We are applying for an IRD Number and complateting NZ PAYE Tax Withholding.  How do I get our software  to communicate with New Zealand's Inland Revenue?

 

Thanks In Advance

Liana Batty

  • Princess_R's avatar
    Princess_R
    MYOB Moderator
    5 months ago

    Hi lmb1707,

     

    Thank you for your post.

     

    I understand the need to streamline your processes for the New Zealand-based employee. I regret to inform you that since your business is registered with the Australian Tax Office (ATO), the current software subscription is designed specifically for Australian reporting. It doesn't facilitate direct communication with New Zealand's Inland Revenue. However, to accommodate your employee's needs, you could consider purchasing MYOB Business Payroll specifically for this individual in New Zealand. This version is tailored to comply with NZ's tax regulations and can help manage NZ PAYE Tax Withholding and other related requirements for that employee. While it might involve an additional purchase, it ensures compliance with NZ tax laws for the specific NZ-based work.

     

    I would also recommend reaching out to your accountant regarding this matter.

     

    Please let me know if you require any further assistance. I'm here to help.

     

    If my response has answered your question, please click on "Accept as Solution" to help other users find this information.

     

    Cheers,

    Princess

    • lmb1707's avatar
      lmb1707
      Partner
      5 months ago

      Thanks Princess, I will keep you link o NZ Software as I Will need it.