Novopay News, 14 December, 2016
Welcome to the last edition of Novopay News for the year.
I think everyone in the education payroll sector has been really busy over the last few months and counting down the days to the holiday break. Our grateful thanks to everyone who got their End of Year in on time. And thank you too to all those schools who have been sending cards and flowers to our payroll advisors. It means a lot to us and we value our partnership with you.
Start of Year (SoY) screens are opening today - 14 December. This last issue of Novopay News is full of helpful information and you can also check out the "red SoY toolbox" on the Novopay website for useful guides. The self-paced learning modules here are particularly helpful. Please go through your SUE reports extra carefully as pay period 19 will be a big pay which will include holiday pay and termination pays.
From all of us here wishing our payroll colleagues in schools a well-deserved merry Christmas and happy New Year - Nga Mihi o Te Wa me Te Tau Hou.
Mathew Gordon, Manager, School Account Teams, Education Payroll Ltd
Start of Year screens open today - 14 December - in Novopay on Line (NOL)
The aim of SoY is to process all information necessary to ensure your staff are paid correctly and on time. This information consists of start and end dates, leave information and all other changes to payroll information effective from the start of 2017. All Start of Year tasks that can be completed online should be completed by:
- 14 December SoY screens open
- 25 January 2017 Complete SoY processing for employees starting in pay period 22
- 6 February 2017 All new annualisation forms (Novo23nt) need to be submitted
- 8 February 2017 Complete SoY processing for employees starting in pay period 23.
At this time of year it's important to meet the deadlines, so that staff are paid correctly, here is a list of key resources to assist you with this:
Please check your SUE reports very carefully as pay period 19 is a big pay which will include holiday pay and termination pays, and there will be no bank stops in pay periods 19 and 20.
Reminder: Changes to pay period 19 and 20 dates
The pay date for pay period 19 has been brought forward to December 19. Also the pay date for pay period 20 has been brought forward to 30 December. The first draft SUE report will be available on Wednesday, 28 December - one day earlier than usual. There won't be a second draft SUE report. Cut-off dates and times remain unchanged as in any other pay period. The dates for pay period 21 are as usual i.e. the pay day is on Wednesday, 18 January which is 2.5 weeks after pay day for pay period 20. For a full list of payroll processing dates, please refer to the payroll calendar on the Novopay website.
Display issues with SUE reports in pay period 19
There are some display issues that may affect you when you interpret SUE reports in pay period 19. There are two cases where the way holiday pay calculations are displayed in the SUE report means you cannot check the calculations - but the gross holiday pay is correct despite the display issues.
This may occur where a term-time-only auto paid or timesheet employee's holiday pay is based on a percentage of earnings. The system converts the calculated holiday pay to notional hours at a notional rate, and the percentage column in the SUE report is blank. In some cases, the SUE report will also display a rate that is different from the rate used for the actual calculation. As a result, multiplying hours times the rate will not equal the dollar amount paid or displayed. Again, the gross payment for holiday pay is correct in these cases, despite the display issues. Visit the Novopay homepage 'News' section for some examples that illustrate the issue.
As you know, at the end of the school year when employees finish contracts or prepare to start new jobs, there are often lump sum payments. Seeing these lump sum payments on their payslip may cause confusion, particularly for payments like holiday pay, which will be in the pay period on 19 December 2016.
To assist you in guiding your employees through this process, remember you can refer to this section of the website. The "How to read your payslip" fact sheet outlines each section of the payslip and the information contained within it and important things to look out for. The fact sheet also includes information about End of Year holiday pay calculations for your reference.
Please note the following message will be printed on all pay period 19 pay slips: "Inland Revenue has changed how tax is applied to lump sums such as holiday pay. For info: novopay.govt.nz (homepage/news)"
You will be aware that we have been proactively informing employees of the Inland Revenue's change to lump sums payments throughout the year for all New Zealanders, and how some staff affected in the education sector are likely to notice this in pay periods 18 and 19. This payslip message is for those staff who may not have yet heard. If you get queries you can refer people to these helpful FAQs here on the Novopay website. Our FAQs contain a link to the technical details on the Inland Revenue's website,
Our thanks to all our payroll colleagues in schools who sent out our flyer on lump sum tax payments and helped us communicate this important issue.
Pay period 20 - public holiday pay calculations for time sheet employees - non teachers
The public holiday pay calculations for time sheet employees, which are eligible to be paid for public holidays between 25 December 2016 and 3 January 2017, will not be reflected in the Draft SUE report of 28 December, but will be in the final SUE report of 30 December.
The employees eligible for this payment are time sheet employees that received payment for a time sheet with a work date that is within 10 working days of the school's end date. It is important that time sheets for pay periods 19 and 20 are entered no later than 3.00 pm on Wednesday 28 December.
Holiday pay tool
The Holiday Pay Tool is designed to help you and you staff understand how your End of Year Holiday pay for 2016 is calculated and when it will be paid. Take a look, it is really very useful.
Reminder from the Ministry of Education - Annualised Employees' on 26 Pay Periods
As a reminder, there will be a pay period in January 2017 (pay period 22 - pay date 1 February 2017) in which staff covered by the collective agreement whose pay is annualised will not receive a payment. This also includes those employees on individual employment agreements who chose to move to 26 pay periods. You may recall this is the outcome of recent court action. Earlier, the Ministry structured annualised payments across the full 27 pay periods, but to comply with the court ruling, the Ministry have had to reduce that to 26 pay periods. All support staff will still be paid what they are entitled to over the course of a year.
For more information, please click here.
Setting up annualisation for employees in 2017
Annualisation can only be set up at the beginning of the year. It runs from pay period 23 of one year to pay period 22 of the following year. Complete a NOVO23nt form for employees to be annualised and submit to Novopay before the paper cut-off date of pay period 23 each year. This ensures the form is processed and the employee is set to have their first pay in pay period 23.
Authorised Users who want to be annualised in 2017
Your Novo 23nt form must be processed by 13 January 2017. You will lose your Authorised User access to NOL, if you are not renewed in time. You will be unable to process payroll online for all your staff until your own Novo 23nt is received and processed.
Authorised Users who are leaving
If you will no longer be an Authorised User at your current school in 2017 please ensure that you have completed your SoY activities as far as possible, and you have all the paperwork ready for the new person when they start in the New Year. Also, ensure that your successor has been set up with access to NOL otherwise they will not be able to pay your school's employees.
Principals do not lose your Novopay on Line (NOL) password
A timely reminder that Principals must be an authorised Novopay Online user with current access. This is to ensure that you can fulfil your delegated management accountabilities, and manage school administrators' pay. Over the Christmas and New Year period, it sometimes happens that a principal's Novopay Online login and password expires (these expire after 90 days if not used). A simple way to remain current and active is to login and view regular reports like the SUE Report, or check progress on your Start of Year Report. Remember too, that passwords for Novopay Online are like banking PIN numbers and should be treated in the same way. Do not allow anyone to know or use your password.
We are receiving an unusually large number of (Novo 6) termination forms. If you are terminating/or transferring staff (permanent teachers only) please do so on Novopay on line (NOL). Only send in forms for the following terminations: retirement - medical retirement - redundancy - retro terminations. Please do not do both. If you are unsure of the employment of an employee in 2017 do not terminate them now but wait until the New Year when their status can be confirmed. Any terminations for 27 January can be done in Bulk Terminations at any time.