Now is the time to check you are all sorted for the three payroll changes that come into effect Friday 1st April 2022.
It’s nothing complicated. The key things you will need to do are:
- Make sure your payroll software is up to date
- Review how the changes will affect your team and inform them of any changes
- Change your APs if you are paying employees by automatic payment (AP)
First up! The minimum wage is increasing
Minimum wage rates increase from 1st April, and as an employer you must make sure that your team are being paid at least the minimum wage.
The new minimum wage rates are:
Adult — $21.20 per hour
Starting-out — $16.96 per hour
Training — $16.96 per hour
A few things to note:
- The starting-out and training minimum wages are set at 80% of the adult minimum wage.
- If your staff are already being paid more than the minimum wage, there is nothing for you to do unless you have specific requirements outlined in your employment agreement that you must meet. If you haven’t reviewed remuneration for your team in a wee while, now is a good time.
- There is no minimum wage for employees under 16 but all the other minimum standards and employment rights and obligations apply. When an employee turns 16, they must be paid the relevant minimum wage.
- If you have a salaried employee at around $45,000 (per annum)…
You should review their salary as you’re in the danger zone for paying under the minimum wage. It’s important to be aware of any extra hours they may be working and ensure they are paid at least the minimum wage. - Find out more here about the increases and how to be ready.
ACC Earners’ Levy is increasing
The ACC Earners’ Levy is the employee’s contribution to ACC and is charged at a flat rate each year. On 1st April it will increase from $1.39 per $100 (1.39%) to $1.46 per $100 (1.46%). Find out more on the IRD website.
Student Loan Threshold is increasing
Employees with a student loan repay 12% of every dollar they earn over the threshold amount. The threshold is increasing on 1st April from $20,280 to $21,268 per year. For weekly payrolls, this means the threshold will increase to $409 per week.
If you need any help over the coming days, don’t hesitate to call us on 07 823 3250 or drop us an email on [email protected]. Often a simple phone call is all that’s needed.
