Business Succession Planning
Salary Sacrifice (or how to pay less tax) - applicable to employees and business owners
Group Medical Insurance
Employment Law
Should you own, or lease your car
IRD PAYE Calculator
Seven Habits of Highly Effective Managers
Business Succession Planning  
 
Also refer to: Business Succession Planning. To arrange a review of your existing Buy-Sell Agreement, or to arrange a presentation,
contact alison@creatingwealth.co.nz Salary Sacrifice (or how to drop your tax rate)
Salary Sacrifice is applicable to employees and business owners on gross salaries above $60,000 per year.
With the Government raising the top tax rate to 39% business owners can drop their tax rate by taking income up to $60,000, paying tax at 33% between $38,000 and $60,000 and paying income in excess of $60,000 into their family trust by way of dividend distribution. In this way the dividend is taxed at 33% and not their higher level of personal tax rate of 39%. Paying a dividend into a family trust only works if the company is not an LAQC structure. If it is, the dividend has to be paid out to the beneficiaries which negates some of the benefit. An alternative to paying a dividend into a family trust is for a shareholder/employee to agree that part of their income is paid directly into an approved superannuation fund. If an employee withdraws their funds early they will be liable to a 5% withdrawal tax.
An example of how this works is:
If you save $450 per month into an approved superannuation plan you presently need to earn $8,852.46 a year in order to do so because your tax rate is 39 cents in the dollar.
If your tax rate for this was 33 cents in the dollar for the same $8,852.46 of your salary you would pay $531 per year less tax, or $44.25 a month less so that this money could be used as additional savings and there would be no impact to your 'bottom line'. That's an extra $42,363 in 25 years time assuming a growth rate of 8%, net of tax per year, for doing nothing other than saving via a "salary sacrifice programme".
Your new monthly contribution could be $494.25 a month but your take home pay will not change.
We recommend that you discuss your personal situation with a Creating Wealth adviser. For further back ground information refer to our Your Money Column article. Group Medical Insurance
If you have more than 10 employees who take up medical insurance then the premium is worked out on the average age of the group. A great way for business owners to get medical cover.
Click here to request an appointment within the Wellington area for group medical insurance . Employment Law
Refer to the following site for issues on employment law http://www.ers.dol.govt.nz
Also refer to Links for other useful business sites. IRD PAYE Calculator
Use the IRD PAYE calculator it makes it so much easier to calculate PAYE. [ Up ] [ Market Commentary ] [ Investments ] [ Financial Calculators ] [ Financial Planning ] [ Retirement ] [ Insurance ] [ Family Trusts ] [ Business Owners ] [ Keys Creating Wealth ] [ Our Company ] [ OUR GUARANTEE ] [ Our Values ] [ Our Advisers ] [ Contact Us ] [ Questions to Ask ] [ Testimonials ] [ Seminars ] [ Readings ] [ Regular Money Article ] [ Money Articles ] [ CLIENT'S CORNER ] [ Weekly Quotation ] [ FAQ's ] [ Jargon Explained ] [ Site Map ] [ Links ] [ Disclaimer ] financial calculators retirement insurance investments OM-IP family trusts leveraged investments financial planning
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