IR Updates 2017
- Details
Changes from April 2017
A.C.C
Now referred to as the ACC Earners' Levy.
The maximum income threshold increases to $124,053.00 resulting in a maximum levy of $1724.33 p.a. The levy rate remains at 1.39%.
Scheduler Payments
Proposed changes to Scheduler payments (Contractor withholding tax) are expected to apply from 1st April 2017. These don't affect payroll directly, but may required changes for individual contractors on the payroll as they may be able to specify their own rate.
Student Loans
The loan repayment threshold for employees on the M SL code increases to $368.00 per week, or $19,136.00 p.a.
IR Updates 2016
- Details
Changes from April 2016
A.C.C
The levy changes to 1.39% and the maximum income threshold increases to $122,063.00 resulting in a maximum levy of $1696.67 p.a.
Banks
Bank of China added to IRD check list.
General
Specification included clarification of procedures and rules for a number of general payroll related items.
Late update: From 1st April IRD require the payment of leave at termination to be treated as Extra Pay. Information on the calculations and update of the published tax tables is still pending and when available KeyPay will be updated to support this.
While this change is intended to ensure neither under or over payment occurs, in practice during testing on real examples, this resulted in considerably more PAYE being deducted than currently under the tax over multiple pays option and in some cases more than treating as a single pay - the very situation the change is supposed to prevent.
New November Update: After user feedback on a recent discussion document reviewing PAYE and GST, it has resolved to reverse this. Paying an employee in advance of the current pay for annual leave is to be taxed the same as for a single pay times the number of pays it represents. Exactly as KeyPay has always done. 