As we approach the 2024 tax year, significant changes will come into effect. These include three legislative alterations to employment laws coming April 1st and an important IRD update impacting payroll for those using the self-service option. At Crystal Payroll, we’re always updated and prepared for these changes. We’ve also got some great system updates to share to keep you informed on how we’re constantly improving. 

Minimum Wage Increase

A key change coming April 1st is the minimum wage increase from $22.70 to $23.15 per hour. Consequently, the training and starting-out wage will rise to $18.52 from the current minimum rate of $18.16 per hour, remaining at 80% of the adult minimum wage. 

To put the increase into perspective, an employee working 40 hours per week at the old rate earned $47,216 before tax annually, whereas at the new rate, they will earn $48,152. This translates to an extra $936 annually or about $18 more per week for an employee working 40 hours at minimum wage.

Due to this upcoming minimum wage increase, employers will need to adjust the wages for employees currently earning below the new minimum wage of $23.15 per hour. To facilitate this transition, Crystal Payroll will automatically update the wage rates for all employees currently on or between the current and new minimum wages. This means anyone earning from $22.70 to $23.14 per hour will be adjusted to the new rate of $23.15 per hour. However, if you prefer to manage this wage adjustment manually, please let us know by emailing our support team at support@crystalpayroll.co.nz.

It’s important to note that the training wage will not be adjusted to reflect this increase in the minimum wage.

ACC Earners’ Levy

Secondly, Employees will see a slight increase in their levy deductions. The ACC earners’ levy rate has been increased to 1.60% from the previous rate of 1.53%, an increase of 0.07%. For those earning up to the maximum liable earnings limit, the increase will be proportional to their income. The maximum liable earnings limit for this levy will be $142,283. For individuals earning more than NZ$142,283 annually, their levy contribution will be capped at a maximum amount of NZ$2,276.52.

Student Loan Repayment Threshold

Thirdly, the threshold for student loan repayments will be raised to NZ$24,128 for the financial year 2024, up from NZ$22,828. This change means that individuals earning below this new threshold will not be required to make student loan repayments. 

The IRD states that for the 2024 tax year that “The amount you have to pay to your student loan each year is 12% of every dollar you earn over the repayment threshold.” The annual repayment threshold increase means that all frequency rates have changed too. 

The repayment threshold is now broken down into the following pay period thresholds:

• $464 if you’re paid weekly.
• $928 if you’re paid fortnightly.
• $1,856 if you’re paid every 4 weeks.
• $2,010 if you’re paid monthly.

Individuals with student loans who earn below the new threshold will benefit as they won’t have to make repayments until their earnings exceed this limit. This can provide some financial relief, particularly to those starting their careers or working part-time.

Want to know how long it will take to pay back your student loan? Have a look here.

Crystal Payroll is set to seamlessly integrate all the recent and forthcoming changes to New Zealand’s payroll system as soon as they take effect. There’s no need for you to take any action, as Crystal will automatically update the ACC earners’ levy within the PAYE calculations, apply the student loan deductions to employees’ pay as required, and implement the new minimum wage rate starting from April 1st, 2024. Rest assured, these updates will be handled efficiently, ensuring compliance with the latest payroll regulations without any additional effort on your part.

As part of our commitment to keeping you informed and ahead of the curve, we need to share an important update from the Inland Revenue Department (IRD) that will affect the way we manage payroll filings together.

Our development team has been in close discussions with the IRD, advocating for a smooth transition into the new tax year. Despite our efforts to delay some changes that could introduce challenges, the IRD has decided to proceed with these updates. 

Starting this tax year, all our Self Service clients will need to take an important step: authenticating your MyIR accounts with Crystal Payroll. This change arises because PAYE intermediaries, like us, will no longer be able to file on your behalf without direct linkage or authentication. This might sound a bit technical, but don’t worry – we’re here to guide you through every step.

To make this process as seamless as possible, we’re introducing a new reminder feature. Whenever it’s time to set up authentication, you’ll see a prompt to ensure you’re all set. It’s a simple step, but one that’s essential. Without this authentication, we won’t be able to file returns for you, which could lead to late filing notifications or penalties from the IRD.

As always, our team is on hand to assist with any questions or concerns you might have about setting up your MyIR authentication with Crystal Payroll.

Exciting news! We’ve added a feature a lot of you have been asking for. It’s a small change with a big impact on personalization. Say hello to Personalized Payslips! Now you can upload your company logo in General Settings, giving your payslips that custom, professional look.

Our development team is always hard at work to enhance Crystal Payroll, ensuring it remains the best choice for your payroll needs. Here’s a snapshot of even more of the new features we’ve rolled out already this year:

General Enhancements

• Department-Specific Leave Allocation: Now, you can assign any leave type to particular departments or branches.

• Enhanced Reporting: Leave accruals are now visible in the Payroll Variance report.

• Improved Timesheet Note Size: We’ve increased the note size for employee timesheet input, making it easier to record and read your notes.

• Updated Help Index: Find new updates in our guides on managing public holidays and annual leave.

• Streamlined General Ledger Analysis: Access this report directly from the “Take Home Pay” section, and seamlessly integrate with “Send to Xero.”

• Cash-Up Overtime in Lieu: Utilize the “Cash-Up Entitlement” function for this purpose.

• Multi-Employee Regular Allowances/Deductions: Apply these to several employees simultaneously.

• Expanded Leave Tracking: Leave without pay is now included in the “Leave Taken History” report.

• Automated Timesheet Notifications: Crystal Timesheets now automatically alert managers via email.

• Selective Leave Approval: Assign leave approval permissions to designated managers.

API/Integration Updates

• Empower Time & Attendance: We have created a seamless API integration so you can easily pull your timesheet hours in Crystal Payroll.

• KIM Time & Attendance: now features a seamless API integration.

• JP Morgan GDFF Banking Integration: Enjoy streamlined banking processes for JP Morgan with this new integration.

Remember, our Crystal Payroll support team is always here to assist you with any questions or guidance you might need regarding the new changes. Your peace of mind is our priority.

Simplifying Public Holiday Payroll: Our New Feature 

One of the hardest aspects of payroll is keeping integrity and compliance with legislation. Specifically, if you employ individuals with non-standard working patterns, determining their eligibility for statutory pay can become a challenge. As Labour Day has just passed, we’re excited to introduce a new tool – the Statutory Pay Calculator –  a new tool to help determine both the eligibility of an employee with irregular working hours for public holiday pay and calculate the exact amount they’re due. Let this new tool make your Labour day payroll even more compliant and simple.

It’s straightforward to figure out the holiday pay for employees with consistent weekly schedules.

Regular Working Pattern:

Suppose you have a 40-hour-per-week employee who always works 8 hours every Monday. If they take Labour Day off, they should still receive pay for their usual 8 hours while getting to enjoy their holiday.

However, when employees don’t have the luxury of a regular working pattern. Determining the entitlement and what is to be paid to the employee becomes much more complicated due to the unpredictable working pattern. 

Irregular Working Pattern:

Consider an employee who occasionally works on Mondays, with varying hours each time. Deciding if they qualify for holiday pay—and if so, how much—becomes a complex task.

How we designed it to be fully compliant

Our latest tool incorporates both case law and provisions from the Holidays Act 2003. By default, it evaluates an employee’s work pattern over the past 4 weeks and cross-references it with a broader range spanning from a minimum of 3 months to a maximum of 6 months. This ensures an accurate determination of holiday pay entitlements.

Set up is simple

For a detailed walk-through, watch our in-depth video on the feature and its setup.

With a busy year coming close to the end, we have made some improvements to our system that will help you save more time when doing your payroll with Crystal. Effective  12th of October we have implemented three big changes to our system that aim to streamline your payroll process and give you a smoother and easier to operate system than before.

Timesheet Add-On for Managers

A much-requested feature by our clients interested in Crystal Timesheets was implemented that allows managers to approve hours submitted by an employee only for the departments, branches, or jobs they look after.

Employees can log hours under designated departments, and managers will only see the hours relevant to the departments they are assigned. This fine-tuning allows for better time management and a more streamlined process.

Recommended: If you’re not already utilizing this feature, we suggest exploring our Crystal Timesheets add-on for even more streamlined payroll processes.

Protected Earnings Compliance

In alignment with legislative requirements, our system will now automatically remove certain types of deductions—like Ministry of Justice or Court Fines—that would cause an employee’s income to fall below 60% of their gross wages. This ensures both compliance and that employees retain a minimum income level.

You will simply need to make sure to use the “Regular Deductions” codes of either “Court Fines” or “Ministry of Justice” for this to work.

For More Information: We recommend visiting the Ministry of Justice website to understand this requirement in greater detail.

Accurate One-off Pay Period Calculations

We have improved the accuracy of PAYE calculations for one-off pay periods. The system now combines regular and additional income to calculate PAYE deductions accurately, eliminating the need for manual adjustments. All you need to do is to enter the additional income into the one-off payment and Crystal Payroll will combine the income from the main pay-run for accurate PAYE calculations. This not only means commissions are easier to calculate, but also back payments.

At Crystal Payroll, we are committed to making the payroll process as user-friendly as possible. We are always open to your suggestions for further improvements. If you have any questions or require additional information about these updates, our support team is readily available to assist you.

Thank you for choosing Crystal Payroll as your trusted payroll solution provider. We look forward to continuing to serve your payroll needs efficiently.