Your Tax Obligations
Au Pair PayLink Payroll Service
Au Pair Link operates an Au Pair payroll service called Au Pair PayLink. With Au Pair PayLink we pay your Au Pair, calculate and pay the correct PAYE tax and take care of all holiday pay, sick and annual leave entitlements. For more information please see the PayLink Payroll Service page on our website. Au Pair Link also provides all Host Families with an industry leading Individual Fixed Term Employment Agreement and can supply you with best practice industry information regarding taxation and employment legislation.
General tax information
Au Pairs typically enter New Zealand on a Working Holiday Visa or Student Visa. New Zealand does not have a specific 'Exchange Visitor Visa' programme for Au Pairs and other foreign workers like in the United States of America e.g. the USA J1 Visa. Anyone working in New Zealand on a Working Holiday Visa or Student Visa enjoys the same benefits and rights under New Zealand employment law as per any another employee in New Zealand. Therefore, in New Zealand, an Au Pair will become the employee of their Host Family and as such all Host Families in New Zealand must comply with the Employment Relations Act and other employment laws. For more information on your responsibilities as an employer please visit the Employer Responsibilities page on our website.
As your employee, Au Pairs are entitled to holiday pay, public holidays, sick leave and annual leave. Au Pair weekly wages are net cash payments exclusive of PAYE tax and board or lodging. As a result, board or lodging must be included as part of the total gross package provided to your Au Pair – on which PAYE tax is calculated.
Example tax calculation
An Au Pair’s gross wage is based on the current adult minimum wage. Please see the table below for information on how the Au Pair gross wage, board and lodging and relevant PAYE tax is calculated. Please note that the applied minimum wage is effective from the 1 April 2011 and is subject to change.
Example A:
This example assumes the Au Pair is on our Au Pair 123 programme and is working 30 hours per week. All Au Pairs must be paid in accordance with the Minimum Wage Act. The adult minimum wage in New Zealand is $13.00 per hour (as at 1 April 2011).
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Weekly item
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Amount
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Calculation
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Comment
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Gross weekly wage including board and lodging
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$390.00
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$13.00 x 30 hours = $390.00
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Gross weekly wage is based on minimum wage and includes board and lodging.
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PAYE tax (based on Gross weekly wage)
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$57.35
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$390.00 x tax rate = $57.35
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PAYE tax is calculated on the gross weekly wage including board and lodging.
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Net weekly wage including board and lodging
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$332.65
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$390 - $57.35 tax = $332.65
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Net weekly wage is less PAYE tax amount.
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Net weekly wage less board and lodging
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$152.65
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$332.65 - $180 = $152.65
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Value of board and lodging – not actually paid to Au Pair.
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Cash payment to Au Pair (30 hours Au Pair 123)
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$180.00
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Weekly net cash payment to Au Pair as per Au Pair 123 programme.
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Total cost to Host Family (including PAYE tax)
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$237.35
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$180 + $57.35 = $237.35
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Total weekly cost to Host Family. Net weekly cash payment to Au Pair + PAYE tax.
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Please note: Au Pair weekly wages are net cash payments exclusive of PAYE tax and board or lodging e.g. $180 net per week for 30 hours on our Au Pair 123 programme. As a result, board or lodging must be included as part of the total gross package provided to your Au Pair – on which PAYE tax is calculated.
Further information
Au Pair Link provides Host Families with best practice industry information regarding taxation and employment legislation. For more information please contact us or call the IRD on 0800 227 774 or visit their website www.ird.govt.nz.