IR Updates 2013

Details
Last Updated: Tuesday, 12 March 2019 00:43

Changes from April 2013

Student Loans

  • Standard payment rate changes from 10 to 12% for pay periods ending after 31st March.

Kiwi Saver

  • Employer and employee minimum and default contributions increase from 2 to 3% on earnings for pay periods starting after 31st March.

Taxation

  • Removal of the Low (below $9880) ML rate.
  • The Tax credit for children has been removed.

A.C.C

  • The levy remains at 1.7% but the maximum income threshold increases to $116,089, giving a maximum levy of $1973.51.

Tax Tables

  • When the Tax tables are updated after completion of End-of-Year maintenance, KeyPay will change the Student Loan to 12%, increase the A.C.C threshold, and set the payroll default minimum Kiwi Saver rates to 3%. (Already configured higher default rates will be retained.)

End of Year

  • Use of the ML code itself is removed for pays ending after 31st March and if an employee is not converted no rebate will be applied to the ML Code.
  • KeyPay will try to convert all employees on the ML code to M during End-of-Year maintenance. If the employee requires something else they will need to complete a new declaration form in the usual way. Their student loan status, if applicable, is not affected and will continue to apply to the M code.
  • Kiwi Savers will be updated to the 3% minimum, only if the pay period end falls on Sunday 31st March. i.e The beginning of the first pay period is Monday1st of April.

First Pay in April

  • Kiwi Saver employees and their employer contributions will be updated to the 3% minimum after posting the first pay in April. i.e. For pays from when the start of the pay-period falls in April 2013. (For companies where the pay period ends mid-week and the first week paid in April includes days worked in March, the first pay-day in April is calculated with the old rates.)
  • Only employees on the previous 2% minimums will be updated. Those who are exempt from employer contributions, (company has own scheme etc.) should be unaffected, apart from their own deductions being changed to the 3% minimum, where applicable.
  • The employer contribution for employees younger than 18 are not updated as they require no compulsory contributions. Voluntary contributions, if any, will need to be adjusted manually. Employees over 65 are updated to 3% as KeyPay cannot determine if they have been in Kiwi Saver for the minimum five years. The summary report checks age and will alert unless that employee has been marked as exempt or excluded from such alerts.

N.B.

It is possible that some employees may not convert as expected. We recommend printing a set of employee master-file reports after the last pay in March before the end-of-year and this is a good time to check and update the employee records anyway. (Enter changes after the end-of-year and before the first April pay.) Also, before and after Kiwi Saver reports might be useful.