Novopay News, 2 December, 2016
Welcome to the latest edition of Novopay News.
This issue has some very helpful tips on getting ready for Start of Year. Also the Holiday Pay Tool is now available on the website. Thank you to all the schools completing End of Year on time, and thanks to everyone who has let their employees know about the tax changes to lump sum payments.Christmas is coming up fast and if you haven't sent us your holiday season contact details please do so as soon as you can.
Mathew Gordon, Manager, School Account Teams, Education Payroll Ltd
Have you sent us your holiday season contact?
There are quite a few schools who have not sent us their contact person for pay queries over the holiday break. If we do not have your holiday contact and a payroll problem occurs to an employee over the holidays and they are underpaid, we won't be able to take corrective action. If you haven't done so please email this information as soon as you can to: email@example.com.
When can I set up annualisation?
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 PP23 each year. This ensures the form is processed and the employee is set to have their first pay in PP23.
IMPORTANT: If an authorised user is an annualised employee, you must send their NOVO23nt in before they return to work or they will not be able to access Novopay Online until this form is processed. For the annualisation flyer click here.
We're having to send back a lot of the 23nt annualisation forms
We have no choice but to reject a large number of these forms because they are not being filled in correctly. This form must be completed electronically and all fields (other than #12 and #17) are mandatory. Field # 18 only needs to be filled in if the payrate (grade and step) is different to the current pay. This means that if the payrate (grade and step) is not changing there is no need to fill in field 18 but if the payrate (grade and step) is changing then Yes it is an increment or No it is not an increment must be indicated. We do not require the form with signatures unless it is for the Authorised User.
Snail mail holiday season payslips will be late
Payslips that are sent by post, rather than email, will likely be received on 4 January due to the postal system and public holidays. This is significantly later than when these employees will receive their pay on 30 December.
Please remind your staff about tax changes to lump sum payments
Thank you to all schools who have sent the flyer to their employees about the tax changes to lump sum payments like holiday pay which will affect some of your staff. It is important that everyone is aware of this tax change which impacts on all New Zealanders.
Inland Revenue has changed its operational position on holiday pay to clarify the treatment of tax on holiday pay, annual leave on termination and accrued annual leave paid in advance. This could affect employees at any time of the year but in education more likely in pay periods 18 and 19. There is more info here.
A common question from employees is: "How will I know about this tax change?" The answer is they will not know until they receive their payslips with details of a lump sum payment like holiday pay. Employees are also asking: "How much will the tax be?" They can find out from the tax change information on the home page of the Novopay website under "News".
Start of Year screens opening soon
Now that the End of Year (EoY) screens have closed we want to thank you for completing your school's EoY processing on time. Completing this work during this busy time is no easy feat. We hope the training and preparation materials were helpful. As our focus shifts to Start of Year (SoY), we would like to remind you of the key dates and tools to prepare you for 14 December when the SoY screens open.
The reason SoY screens do not open earlier is because we have to complete all the processing for pay period 19. We need to finish holiday pay processes before we can open the screen so that you will have all the information you need to make your changes and additions for staff returning to work in the New Year.
Things you can do prior to the screens opening on 14 December
To ensure you're well prepared for SoY we recommend you:
Once you have completed the preparation tasks on the checklist, you will be ready to enter information in the Start of Year screens that open on 14 December.
Submitting your school's instructions early means you can avoid the peak processing period at the start of term one and allow time for any amendments or corrections that might be needed. We realise this might not be practical, as many staffing decisions occur between the end of term four and the beginning of term one. Please aim to do as much as you can as early as possible before you go on holiday.
Remember, you must complete SoY processing for each employee before they start in 2017 or they will not be paid on time.
Key SoY dates
To make sure you're on track to complete your school's SoY processing this year, we recommend that you note the following key dates:
December SoY self-paced learning modules are available
- 5-9 December SoY e-workshops
- 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.
Remember if you have any queries your dedicated payroll adviser can help, so please call us on 0508 NOVOPAY should you have any questions.
Holiday pay for returning employees
This is a reminder that examples of holiday pay for returning employees calculations can be found in the Holiday Pay Calculator. The page includes calculations for permanent, fixed term, term time only, time sheet only and 52 week non-teachers.
Before you leave for the holidays, remember to process any information that you have for your employees in the week before you go. This will give the Novopay Service Centre time to contact you if you need further information to process instructions.
We also recommend taking advantage of the support available for Start of Year so you feel confident with the process when you come back to school in the New Year. You can book a training slot Alternatively, the self-paced training modules are available on the Novopay website.
An important reminder about payroll processing dates for pay periods 19 and 20
As pay periods 19 and 20 are shorter, to take account of the Christmas break, there are some changes to deadlines.
Pay Period 19
The pay date for pay period 19 has been brought forward to December 19. The timing of this pay is to ensure employees are paid at the start of the week. This is good timing for Christmas.
There will be a draft SUE report on Thursday, 15 December, but no second draft SUE report. There will be no ability to stop pays (Bank Stops) so you will need to check your draft SUE report very carefully. This is particularly important because not only are time frames condensed, but this will be a big pay which will include holiday pay and termination pays.
Pay Period 20
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 and no ability to stop pays (Bank Stops). 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.
New NZEI subscription rates
NZEI have new fortnightly subscription rates effective from 4 January 2017, pay period 21. The new rates and salary bands to which they apply are shown below. There is no change to the lowest rate this time.
- $1.00 to $354.79 $2.30
- $354.80 to $709.59 $5.98
- $709.60 to $1,064.38 $11.96
- $1064.39 to $1,419.18 $17.94
- $1,419.19 or more $23.91