Is your business ready for the three important payroll changes? These three changes will take effect from the 1st April 2012. The changes affect every employer and employee in New Zealand.
1. Kiwisaver changes:
Currently all employer kiwisaver contributions up to 2% are exempt frpm Employer Superannuation Contribution Tax (ESCT). Any contributions above 2% are subject to tax. From 1st April 2012 the exemption will be removed all employer contribution will be taxed.
2. ACC Levy – Rate Reduction:
The current ACC levies for 2011/2012 year is $2.04 per $100 of earnings. The levy amount for the 2012/2013 year will be reduced to $1.70 per $100 of earnings. Remember to update your payroll or your employees will be overtaxed!
3. Student Loans:
All student loan borrowers from 1st April 2012 will be required to use the student loan (SL) Tax Code regardless of earnings unless they have an exemption of use a CAE, EDW or WT Tax Code. Previously you only needed to use the SL Tax Code if your earnings were above the repayment threshold. The student loan repayment threshold is $347 per week.
**MYOB Payroll 2012 will automate the changes.