News for School Payroll Staff


Novopay News

A message from Education Payroll Services

Welcome back for term four! The last newsletter we sent you arrived in your inbox just before the holidays so you might not have had the chance to review it. In it we talked about End of Year/Start of Year (EoY/SoY) and how you can prepare yourself for the process. To ensure you have all the information you need for this busy time, we've revisited some EoY/SoY preparation highlights in this edition, and have included some frequently asked questions about payroll processing you and your colleagues have raised in the EoY/SoY Overview webinar. The webinar runs through to 17 October 2014, so if you haven't signed up yet, you still have the chance to do so here.

We have also begun providing refunds to schools for PAYE, student loan and Kiwisaver deductions on overpayments and stop payments starting this week. Please read below for more information and frequently asked questions about the process.

Finally, with the transfer the schools payroll service to a Government-owned company taking place this week on October 17 2014, please remember you will see no disruption to the systems, services, and contact numbers available to you during this time.

Happy reading

Rebecca Elvy, Associate Deputy Secretary, Education Payroll Services

EoY/SoY

As mentioned in the last Novopay News, EoY screens are available from 28 October, the day after Labour weekend. But don't wait until then to make a start. To make sure you are prepared early, remember to sign up for the EoY/SoY Overview webinar and review the updated Novopay End of Year 2014 Instructions and Novopay Start of Year 2015 Instructions which have been divided into a cross-referenced checklist and guide to assist you through the process.


EoY/SoY key dates

Date

Activity

29 September onwards

The 2014-2015 EoY/SoY Overview webinar opened and the 2014/2015 EoY/SoY instructions became available on the Novopay website.

29 September onwards

Prepare for EoY processing

28 October 2014

EoY screens open

19 November 2014

Complete EoY processing by this date

November 2014

Prepare for SoY processing

8 December 2014

SoY screens open

EoY/SoY reminders

  • Ensure that your school's authorised users have access to Novopay Online (NOL) before screens open on 28 October 2014. Also, check that your password is still valid as they do expire every 60 days. If you need to reset your password, please contact the Novopay Service Centre at support@novopay.govt.nz or on 0508 668 6729. For more information about access for authorised users, please visit the Novopay website.

  • Check that your computer's browser is up to date. For best results, use version 10.0 or higher if using Internet Explorer, and version 23 or higher for Firefox. If your school uses a different browser, we recommend using either Internet Explorer or Firefox, at least for EoY/SoY processing. For further information please visit the Novopay website.

  • Print off your End of Year report as early as possible, and review it with your Principal to check that the data is correct. Use this report to gather employee information for your end of year processing, including employee last day of duty and termination information. Form more information refer to the Novopay End of Year 2014 Instructions.


EoY/SoY Frequently Asked Questions

What end date do I enter in the 'Maintain School Term Dates' screen in NOL?

End dates for schools vary. Enter the date of the last day your school is open for instruction for term four, unless this is a Friday. If the last day is not a Friday, employees will not have completed a full week of work and are only due payment up to the last day worked. However, if your school's last day of term four is a Friday, the end date needs to be entered as the following Sunday to ensure teachers are paid for the full week.

Recording end dates for term time only employees

What do I enter for a term time only employee who finishes before the end of term four date, but starts again next year?

If their last day of duty (LDD) is within 14 days of the school's end date, then enter a last day of duty in the EoY screen.

If their LDD is more than 14 days prior to the school's end date, and they are returning to the same position in 2015, then book leave without pay to cover the period from their last day at the school to the school's Term 4 end date. In this case, you will not need to enter their LDD in the EoY screen, as the school's Term 4 end date will become their last day of duty.

If their LDD is more than 14 days prior to the school's end date, and they are returning to a new position in 2015, then do not enter a last day of duty in the EoY screen. Instead, treat them as a termination. Complete a NOVO1nt form to restart them in their new position.

In previous years, I've had to terminate term time only employees who finish before the end of the school year, but come back in the new year. Is there a way around that?

If they are ceasing their current position and restarting in a new position they must be terminated and restarted. If they are continuing in the same position you do not need to terminate them. Check out the Novopay End of Year 2014 Instructions for more information about entering their LDD or LWOP.

If a term time only employee keeps the same role, but their hours change, do I use a NOVO2nt?

You are required to notify the Novopay Service Centre of a change of hours. This can be done in NOL in the SoY screen, or by submitting a NOVO2nt form to the Novopay Service Centre. Please see the Novopay Start of Year 2015 Instructions for more details.

Do allowances need to be re-entered for 2015?

One of the improvements you'll notice this year is that qualification and first aid allowances will continue automatically once the employee's SoY details have been entered into NOL. If a support staff member is no longer entitled to these allowances, please complete a NOVO2nt form and submit to the Novopay Service Centre to cease them.
In most cases, fixed term allowances need to be re-entered into NOL. For more information, review the 2015 SoY instructions on allowances.

What happens if I enter a termination date early?

After you submit the termination date and reason for not returning in the EoY screen, you will not be able to make any further changes to the employee's details in NOL. Therefore, it is best to submit terminations online as close to the resignation date as possible. To submit any additional instructions, you will need to use the appropriate forms.
Annualisation

Where do I find the eligibility criteria for annualisation?

The eligibility criteria are in the Support Staff in Schools Collective Agreement under clause 3.11 and Appendix D. This is available to both permanent and fixed term employees.

Who can send in annualisation forms?

Any authorised user can submit annualisation forms, but you'll need to print them out and get them signed for your records. However you cannot submit forms to annualise or change your own pay. If the change relates to your pay please ask your Principal to send the instruction to Novopay for processing.
The copy you send to the Novopay Service Centre does not need to be signed.

What date do annualisation forms have to be sent in by?

Annualisation agreements run from PP23 until PP22 of the following year. In 2015, we recommend sending them in as soon as the NOVO23nt is available on the Novopay website and you have the required information to complete them. Forms can be emailed, or printed and posted, but must be submitted as early as possible prior to PP23.

Do I complete the #11 field of the annualisation form only if the employee is taking long service leave that year?

Yes. Field #11 is used for any kind of paid leave other than annual leave or sick leave that needs to be taken into account in the annualisation agreement.

What forms do I use to change a timesheet employee to an annualised employee?

Please submit a NOVO23nt and submit it to the Novopay Service Centre to load them as annualised. The NOVO23nt is year-specific-the 2015 version will be available soon.


PAYE, student loan and Kiwisaver deduction refunds to schools

Rebecca Elvy, Associate Deputy Secretary, informed principals this week that we have begun refunding schools for PAYE, student loan and Kiwisaver deductions on overpayments and stop payments. These are refunds to schools with employees who have been overpaid from schools' operating grants and have either repaid their overpayment in full or who have begun the repayment process.

Refunds dating back to August 2012 will be processed over the next few months. During this time, your school might receive multiple refunds as employees move through the repayment process. After this initial period, refunds will continue on a bimonthly, ongoing basis. Refunds for completed stop payments are also being paid out to schools in the same way.

As this process is an iterative one, some employees might not show up on the first remittance advice your school receives. These employees will be included in subsequent remittance advices as this process continues. In cases where overpayments are more complex and require further calculation, your school will be notified by phone.

We thank you for your ongoing patience throughout this process. We have included two diagrams below to illustrate the current refund process (Phase II) and the overall overpayment process.

Novopay overpayment recovery process

PAYE, student loan and Kiwisaver deduction refunds process (Phase II)

PAYE, student loan and Kiwisaver deduction refunds process Frequently Asked Questions

Why has it taken so long for these refunds to begin?

We recognise that schools have been waiting for these repayments for a while and we thank you for your patience. Our first focus was on clearing the queue of overpayments awaiting calculation, so that individual employees were provided details on the money they owed and could begin repayment arrangements.

Our focus is now on supporting schools with the elements of the overpayment owed to them above the net paid to the employee. We have taken the time to ensure our data is correct, our approach is tested (with external review) and that your school gets what it is owed.

Why are schools receiving IR refunds?

When an employee is overpaid from a school's bulk grant fund, the school is owed the difference between the gross amount charged to its bulk grant fund, and the net amount that the employee repays. This difference is largely made up of Inland Revenue deductions such as PAYE. A similar process applies to stop payments.

What types of deductions are being repaid?

Schools are receiving refunds for overpaid PAYE, student loan and Kiwisaver deductions.

What types of deductions are not included?

Deductions not included are superannuation provider deductions other than Kiwisaver, employee-requested deductions and other deductions. These deductions will be addressed in the next phase of work which will take place throughout 2015.

Which schools are eligible for IR refunds?

Schools eligible for refunds are those with employees who have been overpaid from schools' operating grants and have repaid their overpayment in full or, who have entered into a repayment agreement and started repayment. Schools are also eligible for refunds of deductions on completed stop payments.

When does this process begin?

This process begins the week of 13 October 2014 and initial refunds will be processed through to the end of this year. During this time, schools may receive multiple refunds as employee overpayments are repaid in full and/or repayment instalments are made as per repayment agreements. After this initial period, refunds will continue on an ongoing bimonthly basis.

How long will it take for my school to receive all IR refunds?

The refund process is iterative. What this means is, if schools have employee(s) with overpayments not showing up on remittance advice in the first instance, they will be addressed in subsequent refund rounds. These rounds will be occurring on a regular basis until the end of the year, at which time they will occur every two months.

What information will eligible schools receive about these IR refunds?

All principals will receive an email explaining this process, along with these frequently asked questions as a guide. Each time schools are due a refund, the school will receive a letter in the post outlining the details of the employees' overpayments including the pay period of the overpayment, the gross, PAYE, Student Loan and Kiwisaver per employee, and the total paid in that particular refund. In the first quarter of 2015, schools will receive an error report with all refunds made to date as part of their school annual audit report schedules.

My school has employees who have repaid overpayments or have entered into repayment but are not showing on the remittance advice. Why?

We thank you for your ongoing patience throughout this process. As this process is an iterative one, some employees might not show up on the first remittance advice your school receives. This process is ongoing and your school will see them on subsequent remittance advices.

Stop payments refunds are also being paid iteratively, and will appear on future remittance advices.

What is an 'exception'?

An exception is an overpayment that is more complex and requires further calculations to ensure an accurate refund is paid. Schools identified as having 'exceptions' will be contacted by phone.

Are employees due a tax refund?

No-when an employee is overpaid, they receive the net amount (excluding IR deductions) and repay the net amount only. The refund we are providing to schools makes up for the difference between the net paid to the employee and the gross paid out from the school's bulk grant fund.

For questions about individuals' yearly tax refund to IR, please contact the IR department at http://www.ird.govt.nz/.

How will this impact our school's Annual Accrual Report?

We recommend you retain all remittance advices for your school's records. Your auditor may want to see them at the end-of-year audit. Your school will be provided with instructions on how to account for this alongside instructions for the Annual

Accrual Report and schedules in the first quarter of 2015.

What can I do if the information received for my school appears inaccurate?

Please contact us at education.payroll@minedu.govt.nz. You can also call us on 0800 663 772.

Other questions?

If you have any questions about these refunds, please contact us at education.payroll@minedu.govt.nz.