What the latest release includes
This latest AMS Workforce release includes timely updates to Inland Revenue and KiwiSaver functionality to meet 2022 tax year requirements coming into effect on the 1st of April 2021.
We have provided updates for both the latest version of our Workforce Management software and the legacy version. In this respect, quite literally no one gets left behind.
Mandatory Inland Revenue Requirements for the 2022 tax year
The key items in the release include:
1. Provision of the new income tax rate
Automatically applies the new personal tax rate on income above $180,000 which was introduced under Parliamentary urgency in December last year.
2. A new secondary income tax code – SA
Secondary Income tax codes have also been updated. The new SA rate applies if Secondary income is above $180,000 for the year.
3. Change to the ESCT rates and thresholds to cater for the new income tax brackets
In alignment with the above, a new Employer’s Superannuation Contribution Tax (ESCT) rate has been set. This applies to superannuation contributions made by an employer. The new rate of 39% applies to superannuation contributions made for an employee whose ESCT rate threshold amount exceeds $216,000 ESCT.
4. Updates to the Student Loan threshold
The amount of the annual repayment threshold for the tax year (commencing on 1 April 2021 and for subsequent tax years) is $20,280 – an increase from $20,020 currently.
As always, we are happy to respond to any questions around the functionality. Please contact your account manager directly or email email@example.com Likewise, we are always happy to talk to anyone interested in keeping up-to-date on NZ payroll compliance as either a direct AMS customer or using our AMS Outsource service.