There are a few payroll changes that will affect almost all employers from 1 April. You will need to be aware of these when you complete your Employer Monthly Schedules (EMS) for pay periods starting on or after that date.
The minimum contribution rate for employers and employees will increase from 2% to 3% of gross salary or wages from the first pay period starting on or after 1 April.
Whilst employees under 18 years of age will still not be automatically enrolled to KiwiSaver, you will need to deduct KiwiSaver employee contributions if requested by the employee or by the IRD. You will still not be required to make employer contributions for KiwiSaver members under 18 years of age.
If you pay salary or wages to schoolchildren, you will now be required to deduct tax and record their details on your EMS.
The end for ML and ML SL tax codes.
Unless your employees give you a new IR330 Tax Code Declaration, any employees using tax code ML will revert to tax code M from 1 April – and any using tax code ML SL will revert to M SL on the same date.
Student Loan Repayments
The repayment rate for standard student loan deductions will increase from 10 cents to 12 cents from 1 April.
If you have any questions regarding these changes, please call us before you complete the first EMS after 1 April 2013.
You Might Also Enjoy Reading
- Hiring a Xero-Savvy Accountant - 20th February, 2017
- Christmas Break - Office Reopening 11 January 2016 - 11th December, 2015
- Returning Kiwis with Australian Rental Properties - 26th May, 2015
- Payments for hurt and humiliation – asymmetric tax treatment - 24th May, 2015
- Valuation of your Business - 23rd May, 2015