News

Payroll compliance updates

Posted on 27 March 2023 / Business

2023-2024 financial year compliance changes that may affect your business

Minimum wage increase
From 1 April 2023 the adult minimum wage will increase from $21.20 to $22.70. If you have employees on the minimum wage, make sure you update their pay rate.

The training and starting-out minimum wages will also both increase to $18.16 per hour, remaining at 80% of the adult minimum wage. This is a rise from the current minimum rate of $16.96 per hour.

ACC Earner Levy
From 1 April 2023, the rate will increase from $1.46 to $1.53

From 1 April 2023, the maximum liable earnings threshold for both employees and self-employed people will increase from $136,544 to $139,384

From 1 April 2023, the minimum liable earnings threshold for self-employed people only will be $43,349

Student loans repayment thresholds
From 1 April 2023, the annual threshold will increase from $21,268 to $22,828
Rate for primary income remains at 12% on income over the threshold and secondary income remains at 12% in all income i.e. threshold does not apply

If you pay your employees a standard wage or salary each pay period, this will need to be changed to account for the increase in the ACC Earners Levy Rate and the Student Loan Threshold.

Please either use the Inland Revenue PAYE calculator/tax tables or call our office to confirm the new amounts.

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