This year is also such a season. As summer draws to a close, the days start getting shorter as the workload increases. For people with payroll jobs, this means only one thing: he. It means the end of the year is approaching.
There are four important changes to the New Zealand payroll for the new fiscal year.
- Adult minimum wage will increase to $22.70 an hour starting April 1, 2023
- The ACC annual income tax rate has increased from 1.46% to 1.53%.
- Annual ACC income tax threshold increased to $139,384
- Student loan threshold increased to $439 per week
The above fees are automatically applied to all payment runs with a payment date on or after April 1st. Your employees may see slight differences on their payslips. |
Step 1: Post your final payment run
Make sure all payrolls for the fiscal year are posted. If you’re using payday filings through Xero, you’ll also need to make sure these are filed. To ensure that these payment runs are reported in fiscal 2022-23, the payment date must be on or before March 31, 2023.
Step 2: Review and Adjust
Go to Payroll Settings to see all the information that affects payroll reporting. If something is wrong, you can update this before processing the first payment run for the new fiscal year. You can also use this opportunity to check whether final employee payments and changes have been made.
We know that reconciling posted payment executions is a regular task, but it’s always a good idea to go through reports such as payment history and leave transaction reports to make sure there are no surprises. Recommended. Here are some helpful tips:
- If multiple expense accounts are used for income and KiwiSaver, make sure the totals are added together and compared to the payment history report.
- Check for transactions that have been incorrectly reconciled to expense accounts. You can check this by running the following command: Account transaction report.
- If the totals don’t look correct, it may be due to manual journals. to check the amount. journal reportand then click Manual Journal.
- If you’re having trouble finding the cause of the discrepancies, run the report for a short period (such as monthly) or for each payment period.
Step 3: Make corrections
Errors that occur throughout the fiscal year (such as unpaid or incorrectly posted payment runs) are Unscheduled payment execution.
Simply create a payment run for the desired period and enter the adjustment amount. These adjustments are submitted to the Internal Revenue Service. You can also enter a negative value if you prefer. If you do this, you will need to log into myIR to correct your filing. This is because the Internal Revenue Service does not currently accept negative values through payday filings.
Once corrections have been made, ensure that the payment date of the unscheduled payment run is in the correct fiscal year so that it is reported correctly.
Step 4: Issuance of Annual Income Certificate
An income certificate is a summary of an employee’s income, taxes, and deductions for the tax year. Income certificates can be issued to employees at the end of each tax year or at the end of employment.
[経理]>[レポート]>[収入証明書]The screen allows you to generate and publish income certificates in bulk or individually. For clarity, employers are not legally obligated to issue proof of income to their employees. That’s an employer’s discretion.
Step 5: Confirm and update employee details
- With the minimum wage increase, don’t forget Check and update salary and wage details for affected employees.
- Please note that from 24 July 2021, employees are entitled to 10 days of sick leave as well as the following anniversaries.so you need to review and update Sick leave entitlement for all employees The sick leave anniversary is approaching.
- Review your current leave entitlement and make adjustments if necessary – especially Work patterns have changed recently.
- please remember Need to check and update of ECT rate When each employee starts working for you and at the beginning of each tax year. If an employee’s salary or wage changes during the period Do not change the ECT rate during the year.Instead, change at the beginning of the next tax year.
You are done.sit back and relax
that’s it! Nothing else is required to fix the end of the year for payroll. Your payroll is now in good shape for the new fiscal year. Payments due after April 1, 2023 will be made in the next fiscal year.
In the meantime, please check out zero central For more information, How to prepare payroll for the new fiscal yearagain register Payroll fiscal year end webinar March 2, 2023. friendly support team Also available if you need a hand.