In most cases, you’ll need to provide a tax form to your employees and deduct tax from their wages. But there are some special cases where you may not need to, particularly if you’re hiring someone to work in your home.
Private domestic workers – such as home-helpers, caregivers, nannies, gardeners and domestic odd-jobbers – may classify as an IR56 taxpayer. This means that the employee is responsible for their own tax.
Self-employed contractors – this includes roles where the student invoices you for services or work completed. In these cases, students are responsible for paying their own tax, ACC levies, and any other associated costs.
