What’s coming in the new tax year and how to prepare
With April right around the corner, preparations for the end of the tax year are well underway. This is a typically busy time, but the pressure doesn’t stop on 1 April – with new legislation coming into effect in the new tax year, it’s also time to understand and educate your team on these changes.
To help you transition into 2022/2023 seamlessly, we’ve compiled a list of the key dates and changes you need to be aware of over the next few weeks, and explain how Roubler’s workforce management software can help.
Key dates for the end of the tax year
- 21 March: Employer deductions payment are due for February for small to medium employers. Employer deductions payment due for March 1 to 15 for large employers.
- 28 March: For employers that file GST monthly, AIM instalments are due. Otherwise GST, payments and provisional tax instalments are due.
- 31 March: Last day or 2022/22 tax year
- 1 April: Start of 2022/2023 tax year.
Upcoming changes from 1 April
- Minimum wage increase: The New Zealand minimum wage will increase to $21.20 per hour. The starting-out and training minimum wage will also increase to $16.90 per hour.
- ACC earners’ levy increase: The ACC Earners’ levy rate will increase to $1.46 for every $100 of liable earnings. The maximum liable earnings threshold will also increase to $136,544.
- Student loans: The annual student loan repayment threshold will increase to $21,268. This is the income level above which student loan deductions will be taken. This is broken down by pay period threshold amounts.
What you can do to prepare
Check employee details are up-to-date
Review your employees’ details and make sure everything is up-to-date and correct in preparation for the new tax year. With Roubler, you can ask employees to update their information – such as contact details, financial and payroll details – via the employee self service app. This means payroll doesn’t have to worry about chasing up information. Roubler also allows you to generate an employee details report as a quick way to audit information such as employee tax codes, email and postal addresses.
Finalise pay run and submit payday filing
Ensure that all pay runs are finalised by the new tax year, including any amendment pay runs you had to create. Then submit your final pay run for the financial year. You will then need to submit the associated pay run’s payday filing employment information (EI) and or employment amendment (EA) to the IRD. Roubler allows you to submit payday filing employment information directly to the IR after submitting your pay run.
Conduct a reconciliation
Before you publish earning certificates, you’ll want to check that the information you provide employees is correct. Roubler allows you to easily conduct a reconciliation of payroll data on earning certificates and compare them with a detailed activity report that provides information such as locations and employees, hours, gross earning, taxable earnings and more.
Publish earnings certificates
The final step is to publish employee earning certificates. Although it’s not mandatory to provide a copy of employee yearly earnings, tax and deductions in New Zealand, employees may ask you for a copy. Roubler allows you to easily generate certificates if the request comes your way.
How Roubler can help
Roubler streamlines tax and payroll processing for you by:
- Automatically calculating KiwiSaver, student loans, PAYE and ACC
- Simplifying expense management with employee self service
- Allowing you to generate payroll reports ready to send to the IRD
- Providing your payroll team with accurate time and attendance data
- Offering total clarity over your workforce management from rostering to time and attendance and beyond.
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