End of year is a busy time for everyone, but it doesn’t need to be complicated. Payroll in Xero makes sure your year end tasks are as painless as possible. We provide you with the tools and education to make your compliance tasks a breeze. This also frees you up to run your business.
Upcoming changes that you need to be aware of:
- The minimum wage is increasing 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. To see how to update this in your organisation, please see our Help Centre.
- The annual ACC earner levy threshold is going up to $124,053, and the Student Loan threshold is increasing to $368 a week – Xero takes care of both of these updates automatically for you.
- There are also some changes to schedular payments rates (i.e. the tax on withholding income for contractors). Anyone employing contractors will need to get familiar with the new rates and rules here.
- From 1 April 2017, most employee share scheme (ESS) benefits must be processed through payroll. For more information see here.
What you need to do:
- Update the the salary and wages information for those employees on minimum wage
- Before the first pay run of the new tax year, you’ll need to review the ESCT rates, to make sure they are based on what the employee actually earned for the previous tax year. This is done from an employee’s Taxes tab.
We’ve also recently released two highly requested payroll reports. The Gross Earnings report and the Leave Liability report. You can find these under the list of Payroll reports. You can use these reports for end of financial year best practice tasks.
For more information, we suggest:
PS: If you can’t find the info you need, the support team are here to help – find out the best way to contact us.