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Where can I get the NZ EOFY 2021 Checklist and NZ Tax Table Update 2021-22?

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Summary

This article contains instructions to Update your NZ Tax table for 2021-22 and an EOFY Checklist for EOFY 2021 for Sage WageEasy.

Resolution

New Zealand EOFY Checklist 2020and NZ Tax Tables Update 2021-2022.

New tax tables become effective in New Zealand from 1 April 2021.

NOTE:  The following changes effective 1 April 2021:

  • The ACC maximum earnings on which the ACC earners’ levy is charged is unchanged at $130 911.
  • Increase in Student Loan annual tax free threshold from $20 020 to $20 280 (from $385 to $390 per week).
  • A new, top tax rate of 39% effective 1 April 2021 for employees earning more than NZ$180 000 per year.
  • New Secondary tax code for income over NZ$180 000 per year.

Effective date on Tax Tables are 01/04/2021:
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ESCT rate and threshold changes
A new top tax rate of 39% for ESCT and associated ESCT rate threshold changes also come into effect from 1 April 2021. The table below lists the ESCT rates and thresholds effective from the start of the 2021/2022 financial year.

ESCT rate threshold amount in NZD (effective 1 April 2021) Tax Rate
$1 - $16 800 10.5%
$16 801 - $57 600 17.5%
$57 601 - $84 000 30%
$84 001 - $216 000  33%
$216 001 and above 39%

Note: The ESCT Threshold Percentage figure should be checked and updated as necessary for each employee at the start of each Tax Year, it should not be changed during the course of the year. The ESCT Threshold Percentage represents an employee’s Annual Gross Salary and Wages plus Superannuation. There are two different methods for calculating the ESCT Percentage Threshold amount.  If you have identified any employees that require changes to the ESCT threshold percentage you can manually update ESCT Threshold values in the Employee Records as necessary via Employee Details > Payments > Superannuation > Edit the [Award] Employer (Award) Kiwi Saver Record; change the ESCT percentage to the applicable percentage.

Further information available on the NZ IRD website at https://www.classic.ird.govt.nz/forms-guides/number/forms-300-399/ir340-guide-paye-weekly.html

These changes have been made in an updated Tax Table pdl file (New Zealand Tax.Pdl) . If you are not on the Latest Version please upgrade.

Payroll Online customers: here are detailed instructions on updating tax tables

Desktop users, please follow points 1 - 8 below:

Save the New Zealand Tax.Pdl file to your Desktop or other file location (the default location within Sage WageEasy for this file is C:\Users\Public\Documents\Wage Easy Payroll\Association Data\New Zealand), and then follow the below instructions to update your tax tables in ONLY your New Zealand Sage WageEasy database\s.

1. Take a BACKUP (or an archive copy to another location) of your Sage WageEasy database BEFORE going any further.

2. Ensure you have upgraded to the latest Sage WageEasy. (V7.5.0.8299 - March 2021)

3. In Sage WageEasy, click on Setup > Associations > New Zealand Tax and click Edit and then click on the Internet Tab.

4. Within the Internet Tab, tick ONLY the Tax tables & Rebates box.

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5. You are now ready to update your NZ tax tables. Click on the Update Now button, click Next and then Load from Disk File. Locate the updated New Zealand Table PDL by clicking on the (…) Ellipsis button. Note: the New Zealand Tax.PDL default location is C:\Users\Public\Documents\Wage Easy Payroll\Association Data\New Zealand\New Zealand Tax.Pdl (on the machine WageEasy has been installed), then Next and Finish to complete the update process. Once complete, select Close. You will need to exit out of the “Edit Association Details” screen by clicking Close.

6. The update has been successful, if, when changing to a PPE date in April 2020 and from Setup > Tax > Tables > Double click on the “M” (Main Income) individual tax table and you should see the Effective Date of 01/04/2021. If not, repeat the above steps or contact support for further assistance.

7. Repeat the Tax Table Update and ESCT Threshold Update for any additional New Zealand databases (companies) you may have. 

8.Once you have confirmed that your tax tables are updated, you are now ready to process your first pay in April 2020. Note: If you are still processing pays in March, or are yet to complete all of your End of Month processing and reporting, it is important to make sure that you CHANGE the PPE date back to the appropriate PPE date in March 2021 to complete this. 

Refer to the IRD website, www.ird.govt.nz, for more information.  To identify the ESCT percentage for each employee you can run HR > User Defined Queries > New Zealand > ESCT_Pct_By_Emp.weq this will show current ESCT percentage for each employee.

Below is a brief sample checklist of recommended EOFY\SOFY steps.

End of Year (EOY) for New Zealand (NZ) falls on 31 March each year.

There is no annual reporting required as Payday Filing is used to generate payday files to the IRD each pay.

Use the following checklist as a guide for your EOY procedures for NZ:

 

Action

Path

 

Complete Final Pays for March

 

 

Generate final Employee Details (ED) and Employment Information (EI) payday files  
  Run various Payment Reports to Reconcile Reportable Figures As per business needs
 

Perform a backup of the database Before Version Upgrade

Close WageEasy and Select Yes to Backup

OR

File > Backup/Restore

  Update Sage WageEasy to Version 7.5.0.8299

How to install latest version

 

Perform a backup of the database Prior to NZ Tax Table Update

Close WageEasy and Select Yes to Backup

OR

File > Backup/Restore

 

Run the New Zealand Tax.pdl Update for 2021-22 FY

Steps 1 - 5 (above) 

 

Perform a backup of the database After Tax Table Update 2021-22

Close WageEasy and Select Yes to Backup

OR

File > Backup/Restore

 

Check Main Income Tax Table effective date is 01/04/2021

Step 6 (Above)

 

Update ESCT Threshold values on the Employee Records as necessary.

You can run HR > User Defined Queries > New Zealand ESCT_Pct_By_Emp.weq this will show current ESCT for each employee so that you may then identify which employees need to be updated.  When you have identified required changes go to the relevant Employee File > Payments > Superannuation > Edit the [Award] Employer (Award) Kiwi Saver Record required ESCT percentage.
 

Perform a backup of the database Before First Pay 2021-22

Close WageEasy and Select Yes to Backup

OR

File > Backup/Restore