Minimum wage rates rise
When: 1 April 2018
What: The adult minimum wage rate has gone up 75c to $16.50 an hour. The starting out and training rates have risen 40c to $13.20.
What you need to do: If you pay your workers minimum wage rates, update your payroll and their employment agreements. Rem
ember that these new rates must be paid from 1 April 2018, so you may need to back-date your wage rates to this date.
If you have workers on starting out or training wages, this is also a good time to check when they will be eligible to move onto the adult rate.
When: Voluntary from 1 April 2018, compulsory from 1 April 2019
What: Businesses will need to file payroll information every payday, rather than once a month. This will replace the employer monthly schedule (EMS).
Why: To make a business’s tax requirements part of its payroll process, rather than being a separate step.
What you need to do: Start thinking about how and when you’ll opt in.
You may find payday filing easier if you use payroll software, because this allows your payroll information, including salary, wages, PAYE and other deductions, to be automatically sent to Inland Revenue at the same time as you pay your employees.
If you already use payroll software, ask your provider how they can support payday filing.
If you don’t use payroll software, start planning now. You’ll have time after your payday to file the returns. Payment due dates for PAYE and other deductions won’t change.
New parental leave rules
When: For employees taking parental leave for a child born (or coming into the employee’s care) from 1 July 2018
What: The rules around parental leave are changing.
The number of weeks that a parent can get government funded parental leave payments increases from 18 weeks to 22 weeks.
The number of hours that an employee can do paid work while they are on parental leave increases from 40 hours to 52 hours during the parental leave period.
What you need to do: Find out what this means for your business. Remember that these changes will apply from 1 July 2018, so entitlements will be different for different staff, depending on when their leave starts.