It’s that point of yr once more. As summer season winds to an in depth, the times will begin getting shorter because the workload ramps up. For these working in payroll, that may solely imply one factor: yr finish is approaching.

There are 4 key adjustments in New Zealand payroll calculations for the brand new monetary yr:

• Grownup minimal wage will enhance to $22.70 per hour from 1 April 2023
• The annual ACC earner levy fee is growing from 1.46 p.c to 1.53 p.c 
• The annual ACC earner levy threshold is growing to $139,384
• The scholar mortgage threshold is growing to $439 per week

The 1st step: Put up the final pay run

Make certain all of your pay runs for the monetary yr have been posted. When you’re utilizing payday submitting by way of Xero, you’ll additionally want to ensure these have been filed. To ensure these pay runs are reported within the 2022 – 23 monetary yr, the cost date might want to fall on or earlier than 31 March 2023.

Step two: Overview and reconcile

Go to payroll settings to evaluate all the data that impacts your payroll reporting. If something is inaccurate, you may replace this earlier than processing your first pay run for the brand new monetary yr. You too can take this chance to examine that any closing worker funds and adjustments have been put by way of.

We all know that reconciling your posted pay runs is an everyday job for you, nevertheless it’s at all times an ideal thought to run your eyes down experiences like pay historical past and depart transaction experiences to ensure there aren’t any surprises. Listed here are some suggestions that will assist:

• If a number of expense accounts have been used for earnings and KiwiSaver, ensure the totals are added collectively and in contrast in opposition to the pay historical past report.
• Verify for any transactions incorrectly reconciled in opposition to your expense accounts. You may examine this by operating the Account Transactions report.
• In case your totals don’t look appropriate, this could possibly be on account of some handbook journals. Verify the quantities by operating the Journal report, after which click on handbook journals.
• When you’re having hassle finding the supply of a discrepancy, run your experiences for a smaller date vary (like month-to-month) or by every pay interval.

Step three: Make any amendments

Any errors made all through the monetary yr (equivalent to missed or incorrectly posted pay runs) may be corrected utilizing an unscheduled pay run.

Merely create the pay run for the required interval, and enter the adjustment quantities. These changes shall be filed with Inland Income. You may even enter destructive values, if wanted. When you do that, you’ll have to ensure you log in to myIR to amend the submitting, as destructive values usually are not at the moment accepted by Inland Income by way of payday submitting.

As soon as any amendments are made, examine the cost date of the unscheduled pay run falls throughout the appropriate monetary yr, so it’s reported appropriately.

Step 4: Challenge annual earnings certificates

An earnings certificates is a abstract of an worker’s earnings, tax and deductions over the tax yr. Earnings certificates may be issued to staff on the finish of every tax yr, or on the finish of their employment.

The Accounting > Stories > Earnings Certificates display screen means that you can generate and publish earnings certificates, both in bulk or individually. To make clear, employers usually are not legally obligated to problem earnings certificates to staff; it’s on the discretion of the employer.

Step 5: Overview and replace worker particulars

• With the elevated minimal wage, don’t neglect to examine and replace the wage and wage particulars for any impacted staff.
• Do not forget that from 24 July 2021, staff are entitled to 10 days of sick depart as at their subsequent anniversary. So that you’ll have to evaluate and replace the sick depart entitlements of all staff with an upcoming sick depart anniversary.
• Overview present depart entitlements and make any changes as mandatory – particularly if work patterns have modified not too long ago.
• Do not forget that it’s good to evaluate and replace the ESCT fee for every worker once they begin working for you and firstly of every tax yr. In case your worker’s wage or wages change in the course of the tax yr, don’t change the ESCT fee in the course of the yr. As a substitute, change it firstly of the subsequent tax yr.

You’re finished! Sit again and chill out

That’s it! There’s nothing else it’s good to do to finalise payroll yr finish. Your payroll accounts are actually in fine condition for the brand new monetary yr. Any pay runs with a cost date on or after 1 April 2023 will fall throughout the subsequent monetary yr.

Within the meantime, take a look at Xero Central for extra info on tips on how to put together payroll for the brand new monetary yr, or register for our payroll monetary yr finish webinar on 2 March 2023. Our pleasant assist group can also be obtainable if you happen to want a hand.