Minimum Wage Increase
On the 1st April 2019 the minimum wage will increase to $17.70 per hour. This rate applies to all employees 16 years and over. The starting-out and training hourly minimum wage rates will increase to $14.16 per hour, remaining at 80% of the adult minimum wage.
Refer: https://www.employment.govt.nz/hours-and-wages/pay/minimum-wage/minimum-wage-rates/
Student Loan Threshold Change at 1 April 2019
The Student Loan Threshold from 1 April 2019 to 31 March 2020 will increase from $374 per week to $380. Any employees with a Student Loan paid by automatic payment (AP) will need their AP updated. Check your payroll software or check the calculations through the PAYE Calculator and update the filing period to 31-Mar-2020. Refer: https://www.ird.govt.nz/calculators/tool-name/tools-p/calculator-paye.html
Secondary Tax ceasing at 1 April 2019
Secondary Tax is being removed from 1 April 2019 and Inland Revenue (IR) will monitor tax paid by wage and salary earners under the new payday filing throughout the year. If an employee looks like they are being over taxed, IR will contact the employee and suggest a more suitable tax code tailored to that employee. IR330 Tax Code declaration forms will be renewed on the IR website in April.
Refer: https://www.beehive.govt.nz/release/end-unnecessary-secondary-tax
ACC Earner Levy no increase at 1 April 2019
The ACC Earner Premium will remain at 1.39% per $100 liable earnings for the year 1 April 2019 to 31 March 2020. However, the maximum Liable Earnings will increase from the $126,286 to $128,470.
KiwiSaver Changes at 1 April 2019
New employee contribution rates of 6% and 10% will be added, so you will be able to contribute 3%, 4%, 6%, 8% or 10% from 1st April 2019. Inland Revenue are yet to release a new KS2 form on their website. The scheme will now be accessible for over 65 year olds.
KiwiSaver Annual ESCT Review – 1 April each year
Remember to check that your employee’s are having the correct ESCT Tax rate deducted from their KiwiSaver Employer Contribution on the first payrun after 31 March this year.
Refer: http://www.ird.govt.nz/payroll-employers/make-deductions/deductions/super-contributions/esct.html#02
The new Domestic Violence & Support Leave
From 1 April the Domestic Violence and Support leave takes effect. You need to get a policy in place for this new leave. If you need a HR contact, please contact us and we will refer you.
Payday filing changes & fictitious dates of birth!
If you need assistance with payday filing, please call us, we are happy to help. Under the new payday filing an employee’s birth date is required. If you have loaded fictitious dates of birth for employees you will need to correct these. IR requires the correct birth date.
Refer: https://www.ird.govt.nz/campaigns/2018/campaign-payday-filing.html
