The answer is yes. The recently announced budget 2012 is bringing in changes that will affect most sectors and your payroll obligations as an employer are no exception.

There are two major changes that employers need to be aware of:

1. Automatic enrolment in Kiwisaver has been delayed to 2014/15 and will be subject to public consultation at that time; however the employer and employee contributions will both increase as per last year, to 3% from 1 April 2013.
2. Student loans repayment details have been tightened with the removal of the voluntary repayment bonus and the loan repayment rate for borrowers earning over the repayment threshold will be increased to 12 cents in the dollar – both changes from 1 April 2013.  They also plan to match information between IRD and NZ Customs Service to identify borrowers in serious default.

This means that employers who are processing payroll themselves will need to adjust their PAYE deduction calculations accordingly come 1st April 2013. Our customers however don’t need to anything at all – FlexiPayroll offers a full payroll processing service that will ensure that your business is compliant and that the transition is so smooth you may not even be aware of it!