Tax Upgraded for 1 April 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
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.
ESCT on Employer Superannuation and KiwiSaver Contributions
- 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.
- 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.