The purpose of a salary is to pay an all-inclusive rate that is a fixed regular payment to an employee for the work they perform. It allows a business to plan and forecast for labour costs on an annual basis and can also provide concise data for business planning over the coming years as the […]
A day in lieu is not an alternative holiday!
One of the main issues from a very long list of issues with the Holidays Act is the incorrect use of terms when referring to an agreed leave type when it is actually in regard to a leave entitlement provided under the Act. This post will discuss why an alternative holiday received under the Holidays […]
DON’T USE TAX REFUND COMPANIES DO IT YOURSELF THROUGH IRD
Please note: Payroll does not provide financial advice to employees but for your own interest we wanted to highlight this area. You may see a lot of ads for tax refunds services from a range of companies. If you have a straight forward refund situation this can easily be done online directly through IRD without […]
CHANGING A WEEK AND THE EFFECT ON ANNUAL HOLIDAY ENTITLEMENT
To start with, the Holidays Act 2003 is stated in weeks and days and not in hours. This is the case even though you will find the majority of payroll systems are in hours. You cannot use hours unless there is an agreement between the employer and employee (Section 17 of the Act). There is […]
Important to know for payroll – Mileage rate for motor vehicles increased
For the 2017 tax year (1 April 2016 to 31 March 2017), the mileage rate for both petrol and diesel fuel vehicles has increased to 73 cents per km. This year IRD are also able to set mileage rates for hybrid and electric cars. The mileage rates for these vehicles are: hybrid – 73 cents […]
Bill for greater transparency in women’s pay discrimination voted down
A private member’s bill that would have provided greater evidence with which to fight gender pay discrimination in New Zealand was lost in Parliament tonight by 59 votes to 60. Green MP Jan Logie, said the Equal Pay Amendment Bill had been supported by a large number of women and women’s organisations. She said it […]
DOES THE BOSS OR HR UNDERSTAND WHAT YOU DO IN PAYROLL? USUALLY NOT!
One of the top gripes we get at NZPPA from payroll practitioners is about having decision makers that do not understand payroll making major decisions that impact on the work done in payroll. This includes payroll reporting to managers that have little or no experience in payroll and what payroll does to HR and […]
Wage by age: How much should you expect to earn at your current age?
Those aged between 40 and 44 earn the most throughout their career, recorded at $1325 per week, but that average dips – by a few dollars – for those slightly older, aged between 45 and 49, at $1323 per week. The data shows those in the 15 to 19 age bracket unsurprisingly earn the lowest […]
NZPPA’s Holidays Act 2003 Taxable Payments Flowchart – FREE RESOURCE
*Please note: The Taxable Payments Flowchart is a guide only One of the issues NZPPA sees with payroll and the Holidays Act is that there has been little input from payroll in actually defining taxable payments and which Holidays Act calculation it should be assigned to. It is common to see when NZPPA undertakes an […]
IMPORTANT TO KNOW FOR NZ PAYROLL – CHANGES TO CONTRACTORS (SCHEDULAR PAYMENTS) FROM 1ST APRIL 2017
The focus for payroll is paying the salary or wage of employees but in some situations the deduction of PAYE from a contractor’s invoice is also assigned to payroll. Key points to this change: A new form is to be used by contractors, the “ir330C” for all payments received on or after 1 April 2017 […]