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.