Are you ready for these payroll changes?

Greenlion News

From 1 April 2021 there are a number of payroll changes coming into effect.

Minimum wage increase – For any time worked from 1 April 2021 onward you must pay the new minimum wage of:

  • Adult minimum wage  – $20 per hour (increasing from $18.90 per hour).
  • Starting-out and training minimum wage – $16 per hour (increasing from $15.12 per hour).

 Please ensure you update this within your payroll software. 

Student Loan Repayment Threshold – For payments made on or after 1 April 2021 the threshold has increasing from $385 to $390 per week. 

Top Tax Rate – There is a new top tax rate of 39% for income over $180,000. The existing 33% tax rate now applies to income between $70,001 and $180,000

Employer Superannuation Contribution Tax (ESCT) – This has a new rate of 39% which has been added. This applies where earnings plus superannuation is over $216,000. The existing 33% ESCT rate now applies where earnings plus superannuation is between $84,001 and $216,000. 

Secondary Income Tax Codes – To account for the increased tax rate, new secondary income tax codes have also been added. The rate for SA and SA SL is 39% for estimated annual income greater than $180,000. The Accident Compensation Corporation (ACC) Earner’s Levy does not apply to these new tax codes.

ST and ST SL secondary income tax codes have also been changed. The rate of 33% stays the same, but these codes now apply where the estimated annual income is between $70,001 and $180,000. Previously this was for all income over $70,000. The ACC Earner’s Levy continues to apply to these tax codes.

Your payroll software should take care of these updates automatically.  However if you would like any assistance to check this, please get in touch.

Related
Greenlion News
December 1, 2021

Final Support before the ‘freedom’ of the traffic lights…

On Monday the Government announced the support available under the new COVID Protection Framework. They also announced that the final Wage Subsidy and Resurgence Support Payment are now available, along with a new Transition Payment. We have set out more details below.   Wage Subsidy – Round 8 The 8th round of the Wage Subsidy…

Greenlion News
October 22, 2021

The goal is 90% – here’s the support package

Todays announcement has certainly given us something to think about and to work towards.  If you haven’t already we do urge you to get vaccinated. Your action now could be the difference for some of our clients coming out with a business intact.  In todays announcement Minister Robertson has shared the path forward as we…

Greenlion News
September 30, 2021

Limitation of Interest Deductibility on Residential Property Investment Released

Earlier this week the Government released draft legislation outlining some detail in relation to the March interest limitation proposals.   The proposals are contained in Supplementary Order Paper No. 64. It is pretty dry and the devil is in the detail so please bear with us.    We have attempted concisely to summarise the key…