NZ Payroll Legislative changes for the 2020 – 2021 year
What are the legislation changes?
The ACC Earner Levy Income threshold has increased from $128,470 to $130,911 making the maximum ACC Earner Levy $1,819.66. The ACC Earner Levy rate stays at $1.39 per $100 of earnings.
The Student Loan Threshold is increasing from the first pay with a period ending date on or after 1st April 2020
If you have employees on either of the Minimum Wage Rates then these must be updated before you process your first pay for the 2020 – 2021 Tax Year. The rates may be updated manually. If the pay covers both March and April, the April days will be the higher rate.
It is the employer’s responsibility, that ESCT % rates for all employees who receive KiwiSaver are reviewed and adjusted, as required, before processing the first pay with an Employee Payment date on or after the 1st April 2020 and at the start of every subsequent Tax Year.
What do I need to do with my payroll software?
You need to install a new build of your software. The new version of MYOB, IMS, ACE, EXO must be installed before you process your first pay with a Period Ending date on or after the 1st of April 2020. If you use MYOB Essentials then this will be done automatically for you.