Tax Upgraded for 1 April 2012 

Posted 10-Mar-2012
iPayroll has been updated for the tax changes coming into effect from 1 April 2012.

We have upgraded iPayroll to correctly calculate tax from 1 April. When you process a payroll, the correct tax calculations are automatically applied following the IRD specifications. These changes apply from the first 'Paid To' (period ending) date on or after 1 April 2012. Please check your 'Paid To' date when a pay is opened.

ACC component of PAYE

  • ACC Earner Levy Rate changes from 2.04% to 1.7%. As a result, employees' take home pay will increase slightly.
Student Loans
  • New tax codes SB SL and ML SL
  • New deduction SLCIR. Inland Revenue may send you a letter requesting an additional Student Loan repayment. The letter will specify the extra percentage to repay and total $ balance outstanding.
  • New deduction SLBOR. Employees may request an additional Student Loan borrower voluntary repayment. This may be a percentage or fixed amount each pay.
  • SLCIR and SLBOR repayments are in addition to the standard 10% SLD repayment.
ESCT on Employer Superannuation and KiwiSaver Contributions
  • 2% exemption from ESCT on Employer KiwiSaver is removed. All KSR contributions are now liable for ESCT.
  • iPayroll® automatically uses new ESCT rates
  • ESCT changes apply from Pay Day on or after 1 April 2012, regardless of the 'Paid To' (period ending) date

For further details see Tax Changes - Budget 2011 on Inland Revenue's web site.