Payroll in NZ – changes are afoot…
With 1 April around the corner, it’s important to be aware of changes that will affect your payroll.
Outlined below are the changes. Your payroll software upgrades should take care of the changes to thresholds and rates, but as always if you need further advice or support, please do not hesitate to contact our payroll team.
· Maximum ACC earner’s levy threshold increases from $1,724.33 to $1,755.37 · Student Loan repayment threshold has increased to $19,448 for the 2018/19 tax year · The 10.5% flat rate used to calculate extra pay for non-resident seasonal worker tax code holders will no longer apply
Minimum wage is also increasing from $15.75 to $16.50 as at April 1st, so those employees on minimum wage will need to be paid this for every hour worked from 1st of April even if this occurs as part of a fortnightly pay period.
It is proposed from 1st April 2018, employers can choose to opt in to file their employer obligations data to Inland Revenue on a payday basis, rather than on the current monthly basis. This is voluntary payday filing.
Payday filing will become compulsory from 1st April 2019.
From April 2018, employers will also be able to electronically amend the returns they file. Instead of filing a paper IR344, myIR can be used to amend the employer returns.
The myIR system enables employers, tax agents, payroll bureaus, payroll intermediaries and others to send electronic versions of the employer monthly schedules – IR348 (EMS – Monthly Schedule) and remittance advice forms – IR345 (EDF – Electronic Deduction Form) securely to IRD via the internet.
From April 2018, ir-File will no longer be used for Electronic Filing of the employer monthly schedules (EMS). The myIR system will be used instead.
For more information please contact our Findex Payroll Team.