|MAJOR CHANGES FOR PAYROLL ON ITS WAY
Based on the present results of the election and even if Labour needs to have the Greens to govern these are the two parties that want to change employment law and tax that will impact on the work, we do in payroll.
Labour employment relations and tax policies (what they campaign on):
· Increase minimum sick leave entitlements from five days to ten days a year.
· Increase the minimum wage to $20 an hour in 2021.
· Make it easier for women to gain pay equity in their organisation or across their industry, by ensuring there are better records of pay equity across New Zealand, including by ethnicity and age as well as gender.
· Make it easier for workers to receive fair wages and conditions, and avoid the ‘race to the bottom’ that occurs within competitive industries by implementing Fair Pay Agreements.
· Strengthen and simplify the Holidays Act, and allow sick leave to be taken when needed.
· Dependent contractors being to have the right to collectively bargain, and we would also look at extending statutory minimum entitlements like being able to take sick leave.”
· On personal income earned over $180,000 a new top tax rate of 39% will apply
It is interesting to see that there has been very little information or policy stated on what will happen with Kiwisaver especially in regard to the employer contribution.
NZPPA has already been doing preparation work on resourcing the impact of these changes on payroll in regard to what we will need to do to support payroll practitioners. Over the next couple of years (as a lot of the above will not happen overnight) NZPPA will be at the forefront of giving you the latest payroll information, technical advice and support.
This will be a challenging time for payroll just coming out of covid but as a profession we are strong and will only become stronger.
As soon as we know information our members will be informed. NZPPA supporting payroll since 2007.