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Tips and Traps for 1st April

Some changes for the 1st April 2017 - Some Tips and Traps for Payroll Administrators

Changes to minimum wage rates 1st April

The Government announced on 24 January 2017 that the minimum wage will increase by 50 cents to $15.75 on 1 April 2017. The starting-out and training minimum wage rates will increase from $12.20 to $12.60 per hour - remaining at 80 per cent of the adult minimum wage.

Holiday pay must be paid in addition to the minimum wage.

An increase in the minimum wage will not affect an employee's other conditions of employment, unless they agree to the changes.

An employee who is paid less than the minimum wage can complain to a Labour Inspector.

Minimum rates and piece work.

By law, employers must pay at least the minimum wage - even if an employee is paid by commission or by piece rate. The minimum wage applies to all workers aged 16 years or older, including home workers, casuals, temporary and part-time workers. (The only exception is when an employee holds an exemption permit.)

To ensure that you are not paying less than the minimum rate for piece work it is necessary to record the number of hours worked.

 ACC Earner levy rates

The Employee ACC Earner Levy rate1 April 2016 to 31 March 2017 $1.39 per $100 (1.39%). The earner levy is paid with employee's PAYE.

Old tax rates and the new tax year

When do the new tax rates take effect?

The old tax rates apply up to the last pay period ending in March. For example, if employees are paid up to the 31st of March they will have the old tax rates. Their next pay will have the new tax rates.

When does the new tax year start?

The new tax year starts on the first day in April that the employees receive their pay. For example if employees are paid up to the 31st Mar but receive their pay on the 1st April, employees will have the old tax rates but the pays will be included in the new tax year.

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