IR Updates 2016

Details

Last Updated: Sunday, 26 August 2018 20:29

Changes from April 2016

A.C.C

The levy changes to 1.39% and the maximum income threshold increases to $122,063.00 resulting in a maximum levy of $1696.67 p.a.

Banks

Bank of China added to IRD check list.

General

Specification included clarification of procedures and rules for a number of general payroll related items.

Late update: From 1st April IRD require the payment of leave at termination to be treated as Extra Pay. Information on the calculations and update of the published tax tables is still pending and when available KeyPay will be updated to support this.

While this change is intended to ensure neither under or over payment occurs, in practice during testing on real examples, this resulted in considerably more PAYE being deducted than currently under the tax over multiple pays option and in some cases more than treating as a single pay - the very situation the change is supposed to prevent.

New November Update: After user feedback on a recent discussion document reviewing PAYE and GST, it has resolved to reverse this. Paying an employee in advance of the current pay for annual leave is to be taxed the same as for a single pay times the number of pays it represents. Exactly as KeyPay has always done.

IR Updates 2015

Details

Last Updated: Sunday, 26 August 2018 20:17

Changes from April 2015

A.C.C

The levy remains unchanged at 1.45%, but the maximum income threshold increases to $120,070.00 resulting in a maximum levy of $1741.01 p.a.

Student Loans

For borrowers with two jobs, provision for transferring any unused $367 p.w threshold amount from an M code to Secondary is now available. It is known as a URT SDR and to take advantage of it, the borrower must apply to IRD for an SDR on their secondary earnings. (The primary income job would need to always be under $367.)
KeyPay now allows a total amount to be specified for CIR repayments. Deductions automatically stop when the amount is reached.

Taxation

Changes to truncation rules. Employees on the STC code are now taxed on whole dollars for each pay when calculating the PAYE.

Child Support

System of determining child support amounts and responsibility is being updated and made more flexible. This has no effect on payroll at this stage, although some employees' amounts may change as a result.