Everything you need to know about payroll this April

This month we saw the increase of the Minimum Wage, changes to Student Loan and ACC Thresholds, Wage Subsidies for Covid-19, Easter and Anzac Day!

Here's what you need to know...

 

Minimum Wage Change

On 1 April 2020 the adult minimum wage increased from $17.70 to $18.90.

The starting-out and training wages will increase to $15.12 per hour (80% of the adult minimum wage).

If you have employees earning minimum wage, you'll need to manually change this in their employee profile

Employment New Zealand have released some guidance on how to manage this during New Zealand's lockdown period.

 

Student Loan and ACC Thresholds

On 1 April 2020 the annual student loan repayment threshold increases from $19,760 to $20,020. This means that the weekly pay-period repayment threshold for people repaying their student loans will increase from $380 to $385.

The maximum annual ACC threshold will also increase from $128,470 to $130,911.

Thankyou Payroll has already taken care of this for clients who process their Payroll with us.

 

Wage Subsidy Scheme

Lots of New Zealand businesses have already received wage subsidies from the Government. If your business is significantly impacted and you need help to pay your team, your business may be eligible.

To find out if your business is eligible please visit:
https://workandincome.govt.nz/products/a-z-benefits/covid-19-support.html

When you’ve received the Wage Subsidy review this document that explains how to pay your team using Thankyou Payroll.

Public holidays when using the Wage Subsidy

Here are some helpful Resources for managing Public Holidays, Annual Leave in timesheets with the Wage Subsidy.

 

Easter and Anzac Day

Your team may be on holiday, working through, or taking annual leave. You will need to set up different pay types, in your timesheets, before you process your pay run.

TYP-Public-Holidays-Easter-2020

Remember, your pay will be processed the evening before Pay Day.

So, if your Pay Day is on a public holiday, then it will process normally. Otherwise, you may need to adjust your Pay Day or payments. 

Here's a handy calendar so you can see which days can be paydays.

2020-Easter-Anzac-square


Do I need to change anything?

If your Pay Day normally falls on Saturday 11 April, Tuesday 14 April or Tuesday 28th April you may need to make changes to your timesheets and/or your Pay Day.

IF
your Pay Day is any of the following dates
Saturday 11 April  Tuesday 14 April Tuesday 28th April
AND

You set up timesheets manually

click here

You use
Direct Debit

click here

You use
Pay Automation

click here

 

If your Pay Day is not on Saturday 11th April, Tuesday 14th April, nor 28th April you don't need to do anything.

 

You manually set up timesheets AND your Pay Day is Saturday 11 April OR Tuesday 14 April OR Tuesday 28th April

Your pay will not process on these days and you will not be able to select these days for you pay to process. If you'd rather pay your employees earlier then you can log into Thankyou Payroll and create a pay manually with an earlier pay date.

easter-2020-screenshot

 

You use Direct Debit AND your Pay Day is Saturday 11 April OR Tuesday 14 April OR Tuesday 28th April

Remember, your pay will be processed the evening before Pay Day.

Your pay will not process on these days and you will find the Pay Day has moved to the next day. You can still click ‘confirm and debit’ as you would normally but your employees will get paid a day later.

If you'd rather pay your employees earlier then you can log into Thankyou Payroll and create a pay manually with an earlier pay date.

If you wish to move the Pay Day earlier please see the following options:

Normal Pay Day 11th April
Manually adjust Pay Day on Dashboard to 10th April, ‘confirm and debit’ Tuesday 7th April for 2-day, or Wednesday 8th April for 1 day

Normal Pay Day 14 April
Manually adjust Pay Day on Dashboard to to 10th April, ‘confirm and debit’ Tuesday 7th April for 2-day, or Wednesday 8th April for 1 day

Normal Pay Day 28th April (ANZAC Day)
Manually adjust Pay Day on Dashboard to 24th April, ‘confirm and debit’ Tuesday 21st April for 2-day, or Wednesday 22nd April for 1 day


You use Pay Automation AND your Pay Day is Saturday 11 April OR Tuesday 14 April OR Tuesday 28th April

Remember, your pay will be processed the evening before Pay Day.

If you'd rather pay your employees earlier then you can log into Thankyou Payroll and create a pay manually with an earlier pay date.  If you are changing your Pay Day to earlier remember you will need to change your Automatic Payment to transfer the funds earlier.

 

Need help?

If you need help with setting up holidays send an email to help@thankyoupayroll.co.nz, or call us on 0800 895 146.