Posted on: Jan 21, 2013
For the pay period beginning 1 April 2013 or after, there are some important payroll changes employers need to be aware of. These changes are summarised below:
- The minimum KiwiSaver contribution (employee and employer) increases from 2% to 3%.
- Minimum Student Loan repayments increase from 10% to 12% for earnings over and above the repayment threshold (currently $19,084).
- ML and MSL tax codes are no longer to be used. These should be changed to M and MSL respectively, unless the employee provides a new IR330 for an alternative tax code.
- Tax credits for children have been repealed. This mean employers of children must deduct PAYE from salary/wages or deduct tax from scheduler payments. Also, for those school children who are existing members of KiwiSaver, employee contributions will need to be deducted at 3%. Note that no employer contributions are necessary for those employees under 18 years.
This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.