NZQA registered unit standard
20078 version 4
Page 1 of 4
Title
Describe taxation, financial, and insurance responsibilities for small
business owner-operators
Level
3
Credits
4
Purpose
People credited with this unit standard are, for a small business
owner-operator, able to demonstrate knowledge of taxation
responsibilities, and describe financial and insurance
responsibilities.
Classification
Financial Management > Financial Skills
Available grade
Achieved
Explanatory notes
1
This unit standard is designed primarily for small business owner-operators who both
own and are actively involved in the operations of a small business, and who may or
may not engage the services of other people in the operations of the business. This
does not preclude other people from being assessed.
2
Legislation relevant to this unit standard includes but is not limited to – Income Tax
Act 2007; Wages Protection Act 1983; Credit Contracts and Consumer Finance Act
2003; Injury Prevention, Rehabilitation, and Compensation Act 2001; Health and
Safety in Employment Act 1992, Goods and Services Tax Act 1985.
3
Examples of small business owner-operators are owner drivers (eg courier or truck
drivers), independent sole traders, crafts people, self-employed people in the creative
industries, independent contractors, and independent consultants.
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of taxation responsibilities for a small business owner-operator.
Evidence requirements
1.1
Income tax requirements for a small business not employing staff are identified.
Range
may include but is not limited to – sole trader, partnership,
company, trust;
evidence of three is required.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
1.2
20078 version 4
Page 2 of 4
Income tax requirements for a small business employing staff are identified.
Range
may include but is not limited to – sole trader, partnership,
company, trust;
evidence of three is required.
1.3
Tax cycles are identified for provisional tax and terminal tax.
1.4
Goods and Services Tax (GST) requirements are identified.
Range
1.5
Fringe Benefit Tax (FBT) requirements are identified.
Range
1.6
vehicles;
one of – loans, goods and services, subsidies.
Accident Compensation Corporation (ACC) payment requirements are
identified.
Range
1.7
threshold, frequency, accounting basis, returns, tax invoices.
employing staff, not employing staff.
Sources of assistance with taxation matters are described in terms of the
services provided.
Range
three sources, including Inland Revenue Department, are
required.
Outcome 2
Describe financial responsibilities for a small business owner-operator.
Evidence requirements
2.1
Business financial records are described in terms of their purpose.
Range
receipts, payments, invoicing, cashbook.
2.2
Drawings are defined in terms of financial recording.
2.3
Financial statements are described in terms of their purpose.
Range
2.4
cash flow forecast, statement of financial performance, statement
of financial position.
Options for financing a significant acquisition are described in terms of
advantages and disadvantages.
Range
options – lease, hire purchase, outright purchase, business loan;
acquisition may include but is not limited to one of – vehicle, office
equipment, specialist equipment.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
20078 version 4
Page 3 of 4
2.5
Depreciation is described in terms of method, rate, and schedule.
2.6
Options for reserving funds for taxation purposes are identified.
2.7
Sources of assistance with financial matters are described in terms of the
services provided.
Range
three sources, including accountant, are required.
Outcome 3
Describe insurance responsibilities for a small business owner-operator.
Evidence requirements
3.1
Areas of risk are identified for a specified small business in terms of their
consequences.
may include but is not limited to – injury, damage to property, loss
of income, non-operation of business, theft, public liability,
professional indemnity, inability to work.
Range
3.2
Insurance options for risks relevant to a specified small business are described
in terms of their purposes.
3.3
Sources of independent assistance with insurance matters are described in
terms of the services provided.
Planned review date
31 December 2020
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
24 November 2003
31 December 2015
Rollover and
Revision
2
22 August 2008
31 December 2015
Rollover and
Revision
3
20 September 2012
Rollover and
Revision
4
17 September 2015
Republished
4
11 March 2016
N/A
N/A
N/A
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
20078 version 4
Page 4 of 4
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the CMR. The CMR also includes useful information about
special requirements for organisations wishing to develop education and training
programmes, such as minimum qualifications for tutors and assessors, and special
resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016