Welcome to the new edition of Novopay News.
This issue covers changes to tax which affects lump sum payments, non-teaching staff on attestation reports, updates to some of the Novo forms following the new collective agreements and another report back on our customer survey results.
Remember your ACC invoices are now available and the levies will be deducted from your school's bank account on September 6.
Manager Service Desk and Support Education Payroll Limited
Tax changes for lump sum payments
What you need to know
In November 2015 the Commissioner of Inland Revenue released an operational position on holiday pay which clarifies the treatment of tax on holiday pay, annual leave on termination and accrued annual leave paid in advance.
Since 1 April 2016 these types of payments have been taxed as "extra pay" and therefore at a lump sum rate.
This operational position applies to every employee in New Zealand and not just the education payroll.
What does it mean for employees?
If your school employee receives holiday pay, annual leave on termination and/or accrued annual leave paid in advance, the tax rate on the payment is likely to be higher than in previous years. The change will affect each individual differently.
For some people it may look to them that they have been over taxed. However this will not be the case.
Given the nature of this change and its impact, we recommend that you visit IRD's website for more information:
Non-teaching staff on attestation reports
Non-teachers are automatically included on the attestation report for your information only.
If a non-teaching staff has met the requirements to be eligible to receive an increment, you must complete a NOVO22nt form and submit it to the Service Centre. The form can be downloaded here
No payroll action needed for union meetings
There is no legal obligation for attendance at Paid Union Meetings to be loaded in the payroll. This means no payroll action needs to be taken in relation to the upcoming Paid Union Meetings.
Novopay forms updated to reflect the new collective agreements
Novopay forms 7t, 9t, 17t, 18t and 19t have been updated to as a result of the new collectives.
You can download the forms here
ACC Levy invoices available
A reminder - your annual ACC levy invoices are now available via Novopay Online (NOL). To access the invoice, log in to NOL, visit the My Reporting tab and choose ACC EOY.
Customer satisfaction survey results
The second quarter Education Payroll customer satisfaction survey results show similar trends to the first quarter, although there were some differences in the age demographics of respondents.
The key metrics EPL are tracking are total satisfaction and overall customer effort score.
Almost 90 per cent are either satisfied (54%) or neutral (34%) with their overall experience of working on the payroll for their school. Almost 83% either agreed (40%) or were neutral (43%) that EPL made it easy to handle payroll issues whereas 17% did not agree that EPL made it easy.
The users who responded to the survey in this quarter were younger than quarter 1 - 51% were under 50 compared with 33% in the first quarter.
The majority of users who completed the survey are confident users of Novopay online (74%) and comfortable using online services (93% do online banking).
The survey of a random sample of users is being undertaken by UMR each quarter with specific questions relating to the service provided and also to seek feedback on areas for continuous improvement.
The second quarter survey was completed online by 210 authorised users from 23rd May to 7th June 2016. These users were spread evenly across the different sizes and types of schools whose employees are paid by EPL.
The next quarter of the survey will be undertaken in September. EPL will share the results with schools via Novopay News.