Payroll Non-Compliance Can Cost Up To $20,000
With so many Payroll platforms available these days, both online and offline, your options for picking the most fitting one can be quite confusing, at first. But it still is important for business people to ensure the system they chose is accurate and up-to-date.
Non-compliance can result in court fines of up to NZ$ 10,000 for an individual, and up to NZ$ 20,000 for a company.
With us, you can avoid such expenses since we are an ISO-compliant company officially registered with IRD and connected to all major New Zealand banks.
In an effort to safeguard against any errors – even unintentionally made – we have invested ample amount of time in building and testing this payroll software along with IRD. This is to ensure the platform is fully compliant, with regular tax and IRD rate updates to ensure all functions are on par with current laws and rates with any legislation changes.
Payroll complexities can be staggering - hance, being able to rely completely on the accuracy of business management tools can make a huge difference.
Your Payroll Ltd. meticulously calculates all payroll functions - including but not limited to leaves, allowances, and deductions. IRD changes are incorporated and tested almost immediately.
Recent Changes To Payroll Management
In 2011, the NZ government announced several tax compliance changes, some of which have a major impact on the payroll.
All KiwiSaver members are exempted from Employer Superannuation Contribution Tax (ESCT) for employer contributions up to 2%. Anything above 2% are subject to ESCT at varying rates and thresholds. This means that employees need to ensure that the correct ESCT rate is used. Here at Your Payroll, this process is automated based on the employee’s historical earnings.
ACC Levy Rate
The ACC levy rate is a component of the overall PAYE rate. The current rate has dropped to $1.70 per $100 earnings for the 2012-13 year. If employers do not update their payroll, their employees will be over-taxed. This has been updated on our system.
Previously, Student Loan payments were required only if earnings were above the repayment threshold. Now, employees with a student loan are required to use the Student Loan (SL) tax code, regardless of earnings. Where SLCIR tax code is compulsory, SLBOR is entirely voluntary.