April 1 2017 Changes

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Minimum Wage

As of 1 April 2017 the minimum wage is increasing by 50 cents to $15.75 per hour, while those just starting out in the workforce and those under the training minimum wage will see a 40 cent increase from $12.20 to 12.60 per hour.   

What do I need to do?

For employees affected by these changes, you will need to manually adjust their wage rates. This can be done under Setup > Employees by editing the employee and updating their pay rates on their Employment tab.

This support article explains how to manage that change if it falls part way through your pay period.

 

Student Loan

The Student Loan threshold is increasing to $368 from $367 a week.

What do I need to do?

FlexiTime will automatically take care of this change to employees that are affected by the increase. However, if you have direct debits set up for salaried employees these will need to be adjusted.  

 

ACC Rates

There is no change to the ACC rate. The annual ACC earner levy threshold is also going up to $124 053.

What do I need to do?

This is all sorted for you in FlexiTime, although it should be noted an adjustment to highly paid salaried employees Direct Debit payments may be needed.  

 

Contractor Withholding Tax

Contractors employed through labour hire or recruitment companies will need to have withholding tax deducted. You can find out more information here.

What do I need to do?

This article will guide you through setting up those deductions for contractors in FlexiTime. If you encounter any complexities around these changes refer to this article.

 

Share Scheme Benefits

Employee share scheme (ESS) benefits will now be taxed as an extra pay. More information here.

What do I need to do?

If you have any of these you will need to start paying them through FlexiTime by simply creating a new pay code and set the tax type to Taxable Allowance.

When adding the pay code to an employee’s pay you will need to:

  • Edit the employee in an open pay
  • Select the pay code from the Pay Code drop down
  • Click Add and set the Quantity and Rate
  • Tick Extra Pay and Not Liable for ACC Earners' Levy

 

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