cleaning job and invoicing

i'm taking on the cleaning at work where i work part time and on wages/paye.
what's the best way to charge and get paid.
the company wants an invoice, but i'm not gst registered. can i still invoice them and charge gst without being registered, or would i invoice them and deduct withholding tax.
cheers for any advice.

I would think if you are invoicing them, you are not on wages but a sub contractor instead.

You can invoice them but not add GST. You can only charge GST if you're registered but you can invoice without GST if you're not registered. There may be an issue with withholding tax but just give the IRD a ring. If you need to deduct it or get a certificate of exemption they'll tell you. Of course, you can always register for GST...

I've always found IRD very helpful when I have questions

Cheers
Kate

thanks guys. i think invoicing without charging for GST sounds like the way. when i used to do accounts, we sometimes got invoices without GST, and we used to code it to:Non GST Item.

My shearer has changed from being GST registered to non-registered. He writes the invoice without GST, as you should do. Remember to include your tax in the rate that you have negotiated, because you will have to declare these payments as taxable income.

You only have to be GST reg if your annual income (which I don't think would include the wages portion) is above .... from memory.... $40k. You could check the IRD website www.ird.govt.nz That should also provide info on what an invoice needs to specify.

I believe the onus is on the employer to deduct withholding tax, so you invoice them the amount they owe, and they are supposed to deduct it from what they pay you (and on-pay that to the IRD). It just means that you are paying tax at source, rather than at the end of the year.

However, you will need to supply them with an IR330 (gives your tax code and IRD number), otherwise they must deduct tax at the non-declaration rate.

Withholding tax applies to (amongst other services) "Cleaning office, business, institution, or other premises (except residential), or cleaning or laundering plant, vehicles, furniture, etc". The rate is 20 cents per dollar if you have supplied an IR330, or 35 cents per dollar non-declaration rate.

If you do register for GST, invoices for total amounts of $50-$2000 do not have to have the GST component shown separately (they can say GST inclusive). Under $50 & over $2000 the GST component must be show separately.

Good luck.

Yes, you need to sort out who is paying your tax, ACC, etc.

If you are doing it on an hourly rate, also take into account sick leave and holiday pay (8% added?), travel and other incidentals as they are asking you to behave as a contractor not an employee.

Seems strange that they want to do part of your work as an employee and part as a contractor. I'd be checking whether they can't do the whole as part of your employee hours and save a lot of mucking about both ends!

Your employer has to tax at source. You have to complete an IR330 to declare your withholding tax code. They just lump it in with all the other PAYE to IRD on the 20th each month.

I would have thought they would have employed you under the cover of your original declaration. Maybe at a different rate. Any reason why not?

i have been at this job (office admin) for 5 months, for which i am paid wages and have paye deducted. and this week, i have taken over doing the cleaning, as well for a bit of extra money. it's for a set amount $xx, no matter how long it takes. the previous person who was doing it (who also also the admin person i replaced) was, besides getting wages - gst registered - and she supplied an invoice to the company. they paid it, and she did the rest herself supposedly. but i am not gst registered, and the boss says he would like an invoice as he wants to claim on that himself through the business - that's how he would like to do it.
so i guess i just give them an invoice without gst, and make my own way from there.
or i could get incoporated into my wages (be easier for me) - but if i do that - he can't claim on it.

i'm confused now...................

i'll check into IRD and ask some questions with them as well.

IRD seems best to me yes

Yes he can can claim it and pay you as wages.
Your normal day job is an expense to the company that just gets charged to "wages", unless he has a code for "office admin".
When you charge for your evening job that can be coded to the expense code for "cleaning".
Do you do the processing? What programme do you use?

Yes, he most definitely can claim it! Not sure where he is coming from on that one...

Just because he is the boss, does not mean he understands accounting []