06 Mar 1 April 2017 NZ Payroll Changes – Easy in FlexiTime
As usual, there are a few payroll changes coming down the line for the new financial year, starting 1 April. Here’s what you need to know, and what you need to do to stay compliant. All in all, nothing difficult this year if you’re using FlexiTime.
- As of 1 April 2017, the minimum wage is increasing by 50 cents to $15.75 per hour, while the starting-out and training minimum wage will see a 40 cent increase from $12.20 to 12.60 per hour.
You’ll need to adjust the pay rates in FlexiTime for any employees affected by these changes.
- The Student Loan threshold is increasing from $367 to $368 a week.
No, this is not an April Fools joke. After being unchanged for 5 years it is now increasing by $1 a week. Really, we’re not sure why they bothered. Perhaps a zero dropped off the increase somewhere along the way. You won’t need to change anything in FlexiTime. However, if you have direct debits set up for salaried employees you’ll need to change the amount to account for the 12 cents per week increase in take home pay!
- There is no change to the ACC rate. The annual ACC earner levy threshold is going up to $124,053.
Well, that’s easy. All sorted for you in FlexiTime. You might need to adjust any direct debit payments for highly paid salaried employees.
- Contractors employed through labour-hire or recruitment companies will need to have withholding tax deducted. More information here.
If you’re a labour hire or recruitment company with contractors you’ll be glad you’re using FlexiTime. It’s nice and easy getting these deductions set up. We’ve got a couple of articles in our support centre to help you with this – please take a look in our Announcements section.
- Most employee share scheme (ESS) benefits will now be taxed as an extra pay. More information here.
If you have any of these, you’ll need to start paying them through FlexiTime.
If you’ve got questions about any of this, or how it applies to your business, send our friendly support team an email: email@example.com.
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FlexiTime PayHero is flexible payroll software for New Zealand businesses. With online timesheets, FlexiTime PayHero makes it easy to track the hours your employees work and pay them accurately.