Payroll Bulletin 5

END OF THE FINANCIAL YEAR

The end of the financial year, 31 March 2024, is approaching.

The new financial year will bring the following changes effective on Monday, 1st of April 2024:

Minimum wage increase

From 1 April 2024, the minimum wage will increase by $0.45 to $23.15 per hour, and the training and starting-out minimum wages will also increase to $18.52 per hour, keeping it at 80% of the adult minimum wage.
If you have employees who are affected by these changes, you will need to update their pay rates as part of your payroll process.

ACC Earners’ Levy rate increase

The ACC earner levy rate will increase from $1.53 to $1.60 for every $100 of liable earnings from 1 April 2024. The maximum liable earnings threshold will also increase from $139,384 to $142,283 for the 2024/25 tax year, with the maximum levy payable becoming $2,276.52.
The minimum liable earnings that self-employed people pay Work and Earners' levies on will increase to $44,250.

Student loan threshold changes

For the 2024 tax year the annual repayment threshold is $22,828.
The repayment threshold is broken down into the following pay period thresholds.
·     $439 if employees are paid weekly
·     $878 if employees are paid fortnightly
·     $1,756 if employees are paid every 4 weeks
·     $1,902.33 if employees are paid monthly 

End-of-year Reporting

Pay Day filing provides all the required information for IRD throughout the year so there is no end-of-year reporting to be done to IRD. 
Any other EOY requirements could be coming internally from your Finance department based on their requirements (FBT information, if FBT is used, etc.).

Links to further information:

· Minimum wage increase - Beehive

· ACC Earners Levy - Inland Revenue

· Student Loan Threshold - Inland Revenue

When are the public holidays over Easter?

There are two public holidays over Easter. This year, Easter Friday is celebrated on 29th March and Easter Monday is on 1st April. 

Easter Sunday, 31st March is not a public holiday.

Public holiday entitlements do not apply to staff working on this day.

Easter Sunday

If a shop plans to open on Easter Sunday and the employer wants an employee to work, both need to meet their obligations before Easter.
These include notifying the employee of their right to choose to not work and the employee replying to the employer in time.
Check the Employment New Zealand website for information about:
•	what employers and employees must do in the weeks before Easter
•	how employees are paid in different situations.

Working on Easter Sunday (not a public holiday) — Employment New Zealand

If you have any questions or need further information, please don't hesitate to contact Olga at olga@topflight.co.nz