• Date Format: DD slash MM slash YYYY
  • This field is for validation purposes and should be left unchanged.

Payroll Updates 2021 – are you ready?

Friday, March 5th, 2021

We have the latest changes regarding Payroll all effective 1 April 2021 here:

 

Minimum Wage Increase

Minimum adult wage $18.90 to $20.00

Training Wage $15.12 to $16.00

 

New Top tier tax rate

Income over $180,000 has a new tax rate of 39%, applies to M, M SL, ME, ME SL tax codes

 

New ESCT rate 

Earnings plus superannuation between $84,001 to $216,000 is 33%

Earnings plus superannuation greater than $216,000 is $39%

 

New Student Loan Threshold 

Threshold increased to $20,280 from $20,020

Weekly threshold is now $390 from $385

 

Secondary Tax Code Changes 

ST or ST SL is 33% for estimated annual income between $70,001 to $180,000

SA or SA SL is 39% for estimated annual income greater than $180,000

 

Payday filing changes 

The IRD want more detail about employees Kiwisaver Eligibility

New filing specifications mandatory

 

Your payroll software will be updated to include these new requirements, however you will need to review each of your employees to see what changes need to be made, such as the minimum wage increase.

As usual, if you are unsure, don’t hesitate to contact your DPA expert to guide you through these changes.