Watch out for upcoming changes to legislation.
Minimum wage increase
Starting from 1 April 2021 the minimum wage is increasing from $18.90 to $20 per hour. You need to make sure this is accounted for and ready to go as part of your payroll. If you’re using Smartly, it’s pretty straightforward to update pay rates, and we’ll prompt you along the way if you forget.
What you need to do:
Review your payroll, work out which people are on minimum wage or close to it. Next, make sure you update any pay rates impacted by the change. All details about the minimum wage increase are on the Ministry of Business, Innovation and Employment’s (MBIE) website.
When you’re in Smartly, type ‘change pay rate’ into the 'Need Help' section of your site, it will provide step by step instructions on how to update pay rates for your team.
New tax rate
A new tax rate of 39% will come into effect from 1 April 2021 for employees earning over $180,000 per annum.
New Zealand’s personal income tax rates now look like this: