Changes from 1 Aril 2012

Changes to Minimium Wage

For employees 16 years and over the minimium wage increases to $13.50 per hour (was $13.00 per hour).
For new entrants and employees on the training minimum wage, this increases to $10.80 per hour (was $10.40 per hour).
PAYE on Salaries and Wages
Useful IRD Links:
2013 Weekly and Fortnightly PAYE deduction tables
2013 Four-weekly and Monthly deduction tables


Changes to Student Loans

All Student Loan borrowers are required to have a student loan (SL) repayment code. There is a new IR330 Tax Code Declaration form which will need to be completed.
Exceptions: A special tax code (STC)  or a repayment deduction exemption (RDE) has been granted by Inland Revenue Department. An exemption certificate from Inland Revenue must be supplied to the employer.
For Student Loan codes click here

Changes to KiwiSaver

From 1 April 2012 the exemption from  ESCT (Employer Superannuation Contribution Tax) will no longer apply. This will not cost the employer any more. The contribution to the employee's KiwiSaver will reduce by the additional tax. See calculation example
The first return under this regime will be for the period 1 – 30 April 2012, due for filing and payment with Inland Revenue Department on 20 May 2012.
PAYE/KiwiSaver Calculator - make sure you select the correct tax year.

The Employer Monthly Schedule (EMS/IR348) will have an additional box (8) to record the ESCT amount for each employee.
The Employer Deduction Schedule (EDF/IR345) will record this in box 8  
Keep a record of all calculations. Inland Revenue Department may query the rate being used.

ACC Levy

This has reduced from $2.04 to $1.70 per $100 of gross earnings.