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Thread: Labour Hire Management Tax

  1. #1
    Join Date
    Nov 2018
    Location
    New Zealand
    Posts
    5

    Default Labour Hire Management Tax

    Hello

    I just got an offer on retails. On the contract, there were clause stated that

    "Scheduler Tax of 20% will be deducted from all payments made to contractors working
    under a labour hire arrangement for a labour hire business. "
    Im confuse, I don't get it. Is this different from individual tax? Say for example I earn 500$ a week. Will the 20% be deducted to my wage and the other percent be deducted for individual tax? Does that mean that two tax code will deducted on my pay?

    Im just new here in NZ and not familiar with tax laws. Can someone explain?

    Thank you very much.

  2. #2
    Join Date
    Dec 2015
    Location
    NZ
    Posts
    48

    Default

    Not sure if this clause applies to you personally or is it just a general clause? Are you a labour hire contractor or an employee of that business? If you are a contractor then refer to https://www.ird.govt.nz/topics/incom...dular-payments
    I think the pdf at the end of this page would help you to understand those tax deductions

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