Monthly Archives: April 2012

IT’S TIME TO CHANGE YOUR PAYROLLS THIS APRIL, FOOLS.

WHAT EVERY KIWI BUSINESS OWNER NEEDS TO KNOW ABOUT TAX CHANGESImage

The beginning of a new financial year is bringing with it a raft of changes and with it new rules and regulations for kiwi employers to get to grips with. If you’re looking at your payroll and thinking someone has pulled a cheeky April fools prank it’s time for an update. The three main changes to affect employers are a drop in ACC Earner Levies, an update of the Student Loan scheme and an adjustment to Kiwisaver.

ACC LEVIES TAKE A DROP

  • With April comes a reduction in the ACC earners levy rate. While it isn’t a huge drop, from the current 2.04 to 1.7 percent of a workers salary this will ultimately mean extra dollars in the employee pocket rather than the IRD coffer.

TINKERING WITH KIWISAVER

  • The kiwisaver scheme also has a slight adjustment. From April onwards the full employer contribution is to be taxed. Before now the first 2% had been exempt, this will impact employers as they will now have to pay more tax on employee Kiwisaver accounts.

STUDENT LOAN CODES

  • Now everyone who has a student loan will have to use a student loan tax code, regardless of how much they are earning. Previously employees would have only used the “SL” tax code when earning above the $19,084 repayment threshold per year. There are also new codes for student loan repayments: SLCIR for compulsory deductions and SLBOR for voluntary deductions.

Make sure that you’ve got your head around the changes and aren’t caught short early on in the new financial year! 

Advertisements
Tagged , , , , , , , , , , , , , ,