In this week's edition we have included information on how to manage Long Term Leave without pay for Teachers, along with information about Bereavement Leave.
There is a reminder that employees with a Special Tax Code (STC) will need to correct their tax code with the Inland Revenue and Novopay prior to the end of the tax year.
Inland Revenue has provided clarification on the treatment of holiday pay when calculating PAYE deductions.
We have provided information about Easter and Southland Anniversary Day entitlements for non-teaching employees.
As it is coming to the end of the balancing period, there will be an additional pay period for schools to balance their 2015 banking staffing, as final balances will be calculated after PP201627 has run.
We have included information for you about the third tranche of the Support Staff Collective Agreement and the minimum wage.
There is also an update about our Customer Satisfaction Survey.
Manager Service Desk and Support Education Payroll Limited
Long Term Leave without Pay for Teachers
Teachers who go on Long Term Leave without Pay to a date greater than the end of the current school year will be paid out holiday pay due at the beginning of their Long Term Leave without Pay period.
If a teacher returns to work earlier than their original intended return date, this will most likely result in an overpayment, because the leave paid out is specific to the original leave booking dates. If this is the case, the teacher will be sent a letter explaining the details of the overpayment along with repayment options.
If a teacher on Long Term Leave without Pay does return earlier than originally booked, you must complete a NOVO12r (Leave Booking Reversal) form to cancel the original booking. The new updated NOVO12r also has a section to resubmit the leave with correct dates. Please submit the forms to the Novopay Service Centre as soon as you can to ensure the teacher is automatically paid on their early return.
If you have a teacher booking Long Term Leave without Pay up to the end of Term 4, you must enter their leave end date as 27 January, the last day of the school year. If another leave date is entered they will likely be overpaid. This is because the leave paid out at the beginning of their long term leave period has been calculated up to and including 27 January.
To find out more visit the Novopay website's holiday pay section.
We would like to provide some clarification about booking Bereavement / Tangihanga Leave.
Novopay Online (NOL) allows paid Bereavement Leave bookings of up to three days at a time. If a staff member has an entitlement of more than three days and is taking more than three days paid Bereavement Leave, you will need to either submit a NOVO12 for the Pay Centre to process, or make a subsequent leave booking on NOL for the remaining days.
NOL also allows for unpaid Bereavement Leave bookings.
Schools should refer to the Collective Agreement or Individual Employment Agreement relating to the employee who has applied for Bereavement Leave for details on the entitlement for that employee. The agreements can be found here.
Special Tax Codes Process
Please remind your employees with a Special Tax Code (STC) that they will need to correct their tax code with the Inland Revenue and Novopay before the end of the tax year. If their code is not corrected or renewed then they will default to an ND (No Declaration) tax rate of 46.45%, applicable from 1 April 2016.
We will write to employees who are on a STC in early March to ensure that they know the correct process to follow. Affected employees will be advised that they must re-apply to Inland Revenue for a Special Tax Code. If their application is successful then they will pass an Inland Revenue instruction on to you, their school's authorised user.
Please send a NOVO4 (Tax Details Change) form with every tax instruction you receive to the Service Centre by 5pm Monday 4 April 2016. This will ensure that your employees' correct tax codes take effect in PP01. Any tickets received after 5pm will be processed in the next available pay.
If your employees have any questions or concerns regarding this process, please ask them to contact IR on 0800 227 774.
1 April Tax Changes
From 1 April holiday pay/annual leave paid on termination and accrued annual leave paid in advance and in a lump sum will be treated as "extra pay", so PAYE will be deducted using the extra pay rates.
If you have employees at your school who have queries about tax payments, please refer your employees to this update link: http://www.ird.govt.nz/technical-tax/op-positions/op-position-calculating-paye-holiday.html
Alternatively, you can contact Inland Revenue directly: http://www.ird.govt.nz/contact-us/contact-us-index.html?topic=phone_landin
Support Staff CA 3rd Tranche Changes
Effective from the 30 March 2016, PP201701, employees paid under the Support Staff in Schools Collective Agreement (including those on the latest IEAs) on Grades A to C will have their pay rates increased in line with the printed rates in the Collective Agreement. Those employees paid on Grade D will have a pay increase of 0.8% applied to their salary. Those employees paid on the Executive Management pay grade are not affected by this pay increase.
Employees who have a Salary Loading will have the new pay rates applied and will have their Salary Loading adjusted down to meet that pay increase.
There is no action for you to take at this time. These automatic changes will display in the first draft SUE report of PP201701, on 7 April 2016, for you to review.
For more information, please refer to the NZSTA website.
Customer Satisfaction Survey
In late February we held two focus groups with Authorised Users involved with school payroll and would like to thank those that attended.
Participants came from a range of small, medium and large schools in the greater Wellington area to help us understand some of the key issues and critical requirements for the service and support expected of Education Payroll. We received some extremely valuable information to aid in the survey design which UMR will further test with a small group of participants before the survey is distributed to a wider audience. How will that work:
UMR will conduct the questionnaire quarterly online, with the first survey occurring before the end of Term 1.
A random selection of schools will be asked to participate each quarter and UMR will ensure that every school is given the opportunity to participate at least once over the school year.
The survey invitation will be available for 14 days to ensure there is enough time for Authorised Users to complete it. We estimate that it will take about 10 minutes to complete
With UMR, we will review the approach after two quarters to ensure a full cross section of schools are being represented through the survey results.
We hope that if you are selected you take the time to complete the survey and provide your feedback. We are committed to continually improving our support and service to Authorised Users and intend use this feedback as part of our overall service improvement plan.
Easter and Southland Anniversary Day entitlements for non-teaching employees
This is a reminder that non-teaching employees may not have an entitlement to Easter Tuesday. Fifty-two week non-teaching employees who are also eligible for Southland Anniversary Day are only entitled to one day (Southland Anniversary Day) not two (Anniversary Day and Easter Tuesday).
We have included links to the relevant employment agreements below for clarification:
Caretakers and Cleaners
As it is coming to the end of the balancing period, there will be an additional pay period for schools to balance their 2015 banking staffing. This gives schools an additional pay period where automatic adjustments will be generated to balance your 2015 banking staffing, as final balances will be calculated after PP201627 has run.
The Minimum Wage
The Government has announced that the adult minimum wage will go up by 50 cents to $14.75 -$15.25 an hour from 1 April 2016, Pay Period 201701 (30 March - 12 April 2016).
The starting-out and training hourly minimum wages rates (youth rates) will also increase by 40 cents from $11.80 to $12.20 per hour from 1 April 2016, Pay Period 201701.
What does this mean for schools
We will automatically apply this increase to all affected employees and this will appear in the first draft SUE for Pay Period 201701.
We will automatically adjust any existing salary loadings.
Please note: You only need to send through notifications to make changes to staff affected by this increase once you have checked the first draft SUE issued on 6 April, and if any corrections are needed.