Newsletter March 2013
Autumn 2013
Welcome to our Autumn Newsletter. In this issue, we will cover the changes that will affect all employers and employees from 1 April 2013. Please feel free to contact any of our team for more details.
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Summary of Key Changes Kiwisaver Contributions Increase – Increases from 2% to 3% of gross salary for both employer and employee contributions New Adult Minimum Wage Increases to $13.75 an hour Primary and Secondary Schoolchildren – Employers must now deduct tax and record details on EMS forms. Repayment Rate for Student Loan deductions – standard deduction to increase from 10 cents to 12 cents ML and ML SL tax codes can no longer by used – change to M or M SL
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KIWISAVER
Increase in Contributions
For all pay periods starting on or after 1 April 2013 both employee and employer contributions will increase from 2% to 3%. If you have employees in Kiwisaver you will need to increase their contribution to a minimum of 3%. You do not need to make any changes if the employee is contributing 4% or 8%. You will need to contribute a minimum of 3% as your compulsory employer contribution for all eligible employees. All eligible employees will notice a decrease in their net wages. Some employers may have agreed with their employees to treat all of the employer KiwiSaver contribution as salary or wages. If this is the case, your employee will notice a reduction in their gross salary to allow for the employer contribution increase. You should explain this to employees prior to 1 April.
PRIMARY AND SECONDARY SCHOOLCHILDREN
If you pay salary or wages to schoolchildren you must now deduct tax and record their details on your EMS. If your employee or Inland Revenue request you to, you will also need to deduct KiwiSaver employee contributions for existing KiwiSaver members under 18 years of age. You don’t need to make employer contributions. Employees under 18 are not subject to automatic enrolment.
STUDENT LOAN REPAYMENT RATE CHANGE
The repayment rate for standard student loan reductions will increase from 10 to 12 cents. What this means is any earnings above the repayment threshold of $19,084 would be liable for the 12% flat rate repayment rate.
CHANGE OF TAX CODES
If any of your employees are using tax code ML change to M and ML SL change to M SL unless they provide you with a new IR330 form.
New minimum wage rates take effect from 1 April 2013.
| Present rate | New Rate from 1 April 2013 | Daily Rate8 Hours | Week Rate40 Hours | Annually | |
| Adults | $13.50 an hour | $13.75 an hour | $110 a 8 hour day | $550 a 40 hour week | $28,600 a year |
| New Entrants16-17 | $10.80 an hour | $11.00 an hour | $88.00 a 8 hour day | $440 a 40 hour week | N/A |
IMS Payroll End of Year Procedures
In addition to the standard end of year reports that you save, we would also recommend saving the following reports in PDF format:-
Total Leave Report – Termination Value Selected
Annual Leave Report – Accumulator Option
Company Payroll Summary
Advantages of Outsourcing your Payroll
Saves you Time We process your Payroll and PAYE so you can concentrate on your business.
We Reduce Risks to you and your business Increasing complexity of payrolls, employment agreements, holiday act and other relevant legislation are areas of risk for any business. Strategic Software can remove this risk from your business.
Inland Revenue We will attend to all your IRD requirements for your payroll including filing documentation and processing your payments by due dates.
Just send us the hours and we do the rest
Give Debbie a call if you would like more information.
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IMS Payroll Healthcheck Would you like a Healthcheck on your IMS Payroll before the end of the financial year? WE WILL CHECK Employee Leave – Is this being calculated correctly? Set Up of Employee Details – in particular when they change hours or employment status Spot-check of Timesheet entries to ensure pay & leave payments correct. Payroll Exceptions Report – Are you using to identify any issues? Backup Procedures Call Debbie on 03 2112589 to discuss. |
Easter Opening Hours
We will close for business Thursday 28 March at 5pm and reopen Wednesday 3 April at 8.30am.
Phone 03 211 2589 Fax 03 218 3408 Level 2, 137 Spey Street, Invercargill
If you have any issues you need to discuss please give us a call.
For urgent assistance over the Easter break, please contact Debbie on 027 211 2596
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Testimonial
“We have used Strategic Software for many years for our Accounting Program as well as our Payroll and have found them to be extremely efficient and reliable. They have a vast knowledge of Accounting Systems and Payroll, nothing was ever a problem. Payroll was a very easy and painless task, Strategic Software took care of every aspect and the reports we received weekly were very detailed with all the information we needed. We have since changed our programs to match our Head Office, however . . .
Carpet Court, Invercargill
