Is Hive Free?
It's free to sign up and post jobs or browse jobs. Once the job is completed we charge your credit card and pass on the card processing fees to the job poster (2.95% + $0.45). For example, on a $40 job we will deduct $41.63 ($1.63 card fees). We deduct our service fee of 7.9% ($3.16) from the job value and transfer the balance ($36.84) to the worker's bank account in 3 working days. This provides sufficient time for a dispute to be raised and mediated by Hive.
What is the verification process?
The verification process is free and is by opt-in. We show the status as pending, in progress or verified to enable people to make an informed decision. We request a police check (this can take up to 20 working days), a copy of a recent utility bill (not older than 6 weeks) and a copy of your skills certification (i.e. Electrical License) or you can request free from StudyLink a copy of your NZQA qualifications.
Do I need to pay tax?
Yes you do! You may earn money in multiple ways, such as employment, benefit entitlement or rental income from property. All of this income is taxable. So, you need to keep a record of all the jobs you do. That income needs to be disclosed as business income on your tax return. You need to record the gross amount (job value) that customers (Job Posters) pay you, not the net amount you receive after the Service Fee is removed. The good news is the Hive Service Fee is a business expense, as is tools used in doing the job, transportation costs and phone and data costs to name a few. Contact IRD to find out more.
Do I have to pay GST?
If you have a GST turnover of $60,000 or more from your Hive activities (or if the combined turnover from your Hive activities and other business activities is $60,000 or more – you need to: register for GST include GST in the price of your taxable sales issue tax invoices for your taxable sales and obtain tax invoices for your business purchase claim GST credits for GST included in the price of your business purchases account for GST on either a cash or non-cash basis and put aside the GST you have collected so you can pay it to the IRD when due lodge activity statements to report your sales and purchases, and pay GST to the IRD or receive a GST refund. If your turnover is less than $60,000, you are not required to register for GST.
Setting the price
The job poster can set the price by hourly rate or job value. The job worker can accept the price or counter offer. The hourly rate must work out to be above the governments minimum wage.