5 Business Compliance Mistakes To Avoid
Running a business in New Zealand comes with a range of legal obligations that can sometimes be overlooked. Ensuring compliance with local laws is critical to avoid penalties and protect your business reputation. Here are five common compliance mistakes Kiwi businesses should steer clear of:
1. Failing to Register for GST on Time
Businesses in New Zealand are required to register for Goods and Services Tax (GST) if their annual turnover exceeds $60,000. Failing to register in time can result in penalties. It’s crucial to track your revenue and ensure you register promptly to avoid unnecessary fines.
2. Overlooking Health and Safety Obligations
Under the Health and Safety at Work Act 2015, employers must provide a safe working environment for their employees. Failing to adhere to these regulations can result in severe penalties and damage to your company’s reputation. Make sure your business has robust health and safety protocols in place and that your employees are trained to follow them.
3. Incorrect Employee Contracts and Pay Structures
Employing staff comes with specific legal obligations, such as drafting compliant employment agreements and ensuring you meet minimum wage requirements. Mistakes in these areas can lead to employment disputes and costly legal issues. CompanyHQ can offer templates to help ensure your contracts are compliant with New Zealand employment laws.
4. Failing to File Annual Returns
Every registered company in New Zealand must file annual returns with the Companies Office to remain in good standing. Failing to do so can result in your company being struck off the Companies Register. Set reminders to ensure that these filings are done on time each year.
5. Ignoring Tax Filing Deadlines
Whether it’s PAYE, GST, or income tax, missing filing deadlines can lead to penalties and interest charges. It’s important to keep your financial records up-to-date and use tools like accounting software to ensure taxes are filed on time.
Avoiding these common compliance mistakes can save your business from legal headaches and financial penalties. By staying on top of your obligations and using tools like CompanyHQ’s document templates and cloud-based storage, you can keep your business in line with New Zealand’s legal requirements.