Minimum Wage Increase of 6%
On the 1 April 2022 the minimum wage will increase to $21.20 per hour. This rate applies to all employees 16 years and over. The starting-out and training hourly minimum wage rates will increase to $16.96 per hour, remaining at 80% of the adult minimum wage.
Refer here
Salaried employees – check for Minimum Wage requirements
If you have salaried employees, you need to make sure that their total remuneration meets minimum wage requirements for each individual pay period.
Any employees’ earnings around $44K per annum should be reviewed.
Employees must be paid at least the minimum hourly wage rate for every hour worked.
Top Tip: ($44,096 / 52 weeks / $21.20 per hour = 40 maximum working hours)
Employees currently on or just above $21.20 per hour
We recommend that you review all employees who currently earn $21.20 or just over per hour. The increase in Minimum Wage is 6%. Where possible this could be a consideration for increasing other employee’s wage rates.
Living Wage
The Living Wage rate is voluntary and currently $22.75 per hour. A living wage is the income necessary to provide employees and their families with the basic necessities of life, enabling them to live with dignity and to participate as active citizens in society.
Refer here
ACC Earner Levy increase
From 1 April 2022 the ACC Earner Levy will increase from 1.39% per $100 liable earnings to 1.46% per $100.
Refer here
Top Tip: Remember to update all employee net pay automatic payments
Student Loan Threshold Change
The Student Loan Threshold from 1 April 2022 to 31 March 2023 will increase to $409 per week. Check your payroll software or check the calculations through the PAYE Calculator and update the filing period to 31 March 2023. The IR online calculators will be updated late March/early April.
Refer here
Top Tip: Remember to update all AP’s of employees with Student Loan deductions
KiwiSaver Annual ESCT Review – 1 April each year
At the first payrun of the new financial year, as an employer you are required to review each employee’s ECST rate to ensure that the rate is correct.
Refer here
Top Tip: To calculate this = Total Gross Earnings + Employer KiwiSaver contribution in the last 12 months
Please contact our Payroll team for any questions, they are more than happy to help!
Anne - anne.b@accounted4.co.nz
Carolyn - carolyn.l@accounted4.co.nz
Kate - kate.c@accounted4.co.nz
