Quartet of tax, payroll changes kick in
The new tax year ushers in four major tax and payroll changes.
Employers face a quartet of four major tax and payroll changes with the new tax year.
“April 1 may well be April Fool’s day, but because it is also the start of the financial year for most businesses – the additional workload and changes to tax and payroll are no laughing matter,” business blogger and MYOB NZ general manager Julian Smith told NBR.
The four major changes are:
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The ACC earner levy is dropping from 2.04% to 1.7% of each employee’s salary.
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The full employer contribution to KiwiSaver will be taxed (previously the first 2% had been exempt).
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Everyone with a student loan will have to use a student loan tax code, regardless of how much they earn. Previously, they would not have needed such a code unless they earned more than the threshold at which they have to start paying off the loan, at present $19,084 a year.
- The minimum wage increases by 50c to $13.50 an hour, while training and new entrants’ minimum wages rose 40c to $10.80 an hour.
“An important area many employers overlook is making time to explain any changes to their employees about their take-home pay," Mr Smith said.
"This year, there are a lot of technical changes so it’s a great idea to make sure your team know what to expect on pay day.”
NBR staff
Mon, 02 Apr 2012
Mon, 02 Apr 2012
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