Aotearoa New Zealand DAG Payroll Working Group

Tax Rate Changes and Impacts: Discussed the implications of not adjusting tax rates and communication strategies.

Provisional Tax and Composite Rates: Explained the importance of using new tax rates starting 31 July.

Changes in Payroll Rates and Thresholds: Highlighted necessary adjustments for resident withholding tax and secondary tax code rates.

Fringe Benefit Tax (FBT) Calculation: Introduced a new FBT calculation formula to align with personal income tax changes.

Changes in Tax Codes and Entitlements: Emphasised the need for timely communication to ensure clients are aware of their options.

Internal Process Updates: Outlined Inland Revenue's strategies for managing these changes.

Farewell to Kat Cav: Announced Paul Orford’s temporary role as co-chair and the group expressed gratitude and best wishes to Kat Cavangagh.

Policy Change Discussion: Overview of the policy change process, highlighting potential roadblocks. Discussions on the "SquareUp" concept for ESCT adjustments and reducing compliance costs. Emphasis on early involvement in legislative processes to align changes with the work environment.

Digital Transformation Initiatives: Plans to transition to digital forms with clear guidelines for digital signatures to facilitate ease in business operations.

KiwiSaver Amendments: Discussed amendments and their implications on the fiscal strategy, focusing on minimising compliance burdens.

Draft Payroll Specifications: Early discussions on draft payroll specifications, emphasising the importance of stakeholder feedback for practical and adaptable compliance solutions.

Multinational Tax Bill Amendments: Introduction of new rules focusing on digital taxation and aligning tax treatments, with an acknowledgment of accuracy concerns in early-stage legislative drafts.

Future Stakeholder Engagement: Plans for dedicated sessions to address specific group issues and ensure the working group is well-informed and engaged. Continued engagement with MBIE, including establishing a relationship manager to improve government interactions.

Slack Channel: Discussion of Slack channel utilisations and updates, including features to be included in the user guide.

Welcomed Kat as Co-Chair, who will serve as the primary DSP contact and assist in framing discussion topics.

The Taxation Bill draft has been delayed to April 1, 2025, prompting the group to prepare questions for the IR Policy Lead and extend invitations to future meetings.

Updates from DSPANZ planning days were shared, including the formation of a tax-specific working group within the DAG.

GWS Operating Model update was provided, focusing on payroll to enhance efficiency and customer support through framework enhancement and process development.

The Gateway Services system shutdown is scheduled for Saturday, March 16th at 2 pm.

The group discussed updates on payroll specs, budget changes, and MBIE Labour Inspectorate responses. Concerns regarding the ESCT issue were raised, suggesting a revisit with IR policy in six months.

The 'congratulations letter' to the incoming Minister for Workplace Relations and Safety was sent, and the proposed Holidays Act changes statement is now published on the DSPANZ website, pending further engagement steps.

The group discussed the introductory letter for the incoming Minister and proposed creating a statement on the proposed Holidays Act changes, as well as, MBIE Labour Inspectorate responses.

Current operations were explored, identifying areas for improvement and highlighting elements for retention in 2024. Future agenda items were addressed, including concerns about Payroll Specs, wet signatures, forms information, and data capture.

Additionally, the group received updates from the Gateway Services team about portal access and provided feedback on the Enterprise Services Customer Support Portal roll-out.

The group will outline their requirements and needs for Employer Superannuation Contribution Tax over/under deductions. It was agreed that DSPANZ will compile the industry's requirements and needs into a formal letter. This letter will serve as the collective voice of the industry and will be submitted to the Inland Revenue Department (IRD) for further consideration and action.

DSPANZ will be putting in a submission to the Employment Relations (Restraint of Trade) Amendment Bill, the group provided feedback on potential areas or topics to focus on.

The group discussed potential individuals or entities to establish relationships with.

The group discussed the KiwiSaver Act, focusing on the need for clarity in salary sacrifice arrangements and concerns about system inequities. Draft submission will be circulated to the group for input.

Angela informed the group about upcoming ServiceNow Customer Service Management (CSM) changes, currently in the trial phase, with further details to follow.

The group provided feedback on the Draft ESCT Issues Letter, with more input expected.

Discussions centered on the groups expectations of digitising forms, with an emphasis on defining form priorities, input requirements, formats, streamlining, preferences, and attributes of effective digital forms.

Clarification was provided regarding the wording related to "the first month of a period of employment" for Payroll calculations & Business Rules Specification Document. It was confirmed as valid, specified in schedule 5, part B, clause 3 of the TAA 1994.

The Restraint of Trade Bill Submission was updated with group feedback and submitted.

The group was presented with an overview of the digital transformation of payroll, engaging in detailed discussions for feedback on current services. Detailed discussions on each service were conducted, providing an opportunity for feedback to enhance product integration.

Updates were provided on the status of both the KiwiSaver Submission and the ESCT Letter. Additionally, the group explored the possibility of preparing a collaborative letter to the incoming Minister to review the Holidays Act. A document will be created within the group to contribute questions for discussion with the MBIE Labour Inspectorate.