27 February 2015
A message from Education Payroll Services
Welcome to the latest edition of the Novopay News.
Start of Year is almost over and I thank you for working with us through this busy period. In particular, your timely responses to our calls and emails have enabled the Service Centre to successfully process a greater number of requests over the last pay period.
Now our focus shifts to supporting you through the School Audit process. All reports relating to the school audits are available to download from NOL.
To help you reconcile your SAAR with greater ease, we have created a utility sheet which automatically creates a spreadsheet from your downloaded reports. Please remember to download the detailed instructions from the Ministry's website and to use the contact information below to answer your audit questions.
This week, as part of the Superannuation Reconciliation Project, we will begin calling SSRSS members whose superannuation deductions haven't been made correctly. Employees are under no obligation to reimburse their missing deductions but, if they would like to do so, we will work closely with them to find a reimbursement option that best caters for their needs. Further information about the Superannuation Reconciliation Project is on the Novopay website and outlined below.
Finally, in this edition we also include reminders about imminent changes to child support deductions, and the end of year process for employees who are currently on a special tax code.
Associate Deputy Secretary
Education Payroll Service
Key changes to child support deductions
There are changes to Child Support laws for the new tax year. As a result, all employees who pay child support will receive a new notice of assessment from Inland Revenue (IR) from February letting them know what their new child support payment will be from Wednesday 1 April 2015.
Employees do not need to inform Novopay of the changes to their child support deductions. The Inland Revenue will send a notice to Novopay and new deductions will take effect in PP02 on 1 April 2015 for payday 15 April 2015.
For further information please visit the child support changes page on the IR website.
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 IR and Novopay prior to 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%.
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 apply to IR for a Special Tax Code. If their application is successful then they will pass an IR 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 Monday 6 April 2015. This will ensure that your employees' correct tax codes take effect in PP02.
If your employees have any questions or concerns regarding this process, please ask them to contact IR on 0800 227 774.
As advised in today's alert your audit reports are now available for download from Novopay Online. We have created a detailed instructions document to guide you through the process of downloading the reports and completing your Financial Statements. This can be downloaded from the Ministry's Finance pages.
As a result of Ernst & Young's review of the payroll data, some schools will also receive an Exceptions report highlighting payroll issues or anomalies which need an explanation at school level. This report will be sent to relevant schools on or around 18 March 2015.
We know that the school audits are a time-consuming exercise, and we are committed to supporting you throughout the process.
If you experience difficulties downloading your reports and / or converting the CSV files, or if you have questions regarding the data itself, please contact the Ministry at Education.Payroll@minedu.govt.nz with "School Audits" in the subject line.
If you have questions about preparing the annual financial statements, please contact your Regional Senior Financial Advisor in the Ministry.
If you have payroll specific questions, please contact the Novopay Service Centre on 0508 NOVOPAY (0508 668 6729) or by email at firstname.lastname@example.org.
Further information about the school audit process can be found in the bulletin published on the Ministry's Finance pages: Update on reporting payroll matters in Annual Financial Statements.
Superannuation Reconciliation Project
The Superannuation Reconciliation Project is underway. This project will identify employees whose superannuation deductions haven't been made correctly since Novopay went live in 2012, and will enable affected employees to reimburse their superannuation scheme, if they wish to do so.
The first phase of the project will cover affected members of the State Sector Retirement Savings Scheme (SSRSS) - AMP (including former AXA members) & ASB. Affected members of the Teachers' Retirement Savings Scheme (TRSS) and KiwiSaver superannuation schemes will be addressed on completion of SSRSS.
From Thursday 5 March, we will begin to contact these affected employees. We're committed to working with employees to find the best reimbursement option for them and to support them through the reimbursement process.
Please take the time to familiarise yourself with the project's process diagram and frequently asked questions on the Novopay website. We have also included a factsheet for your employees, which you can display in communal staff areas.
Tips and reminders:
School Audits - User Access review
Did you know that the Online Access/Audit report from Novopay Online lists all authorised users that are currently active for your school?
We recommend that you download and check this report regularly to ensure that only the people who are currently authorised to carry out payroll administration tasks have access to Novopay, and that their level of access is appropriate.
The report is also a good opportunity to check that access has been cancelled for authorised users who no longer require access or who have left the school.
You can access Online Access/Audit report on Novopay Online through:
My Reporting > School Reports > Online Access/Audit report
This report is particularly useful during the school audit process, as your auditors are likely to ask you about your user access review.
You can find more information on this report and others on the Novopay website under Reports.
You are receiving this newsletter because you are set up as a Novopay Authorised User. If you have received this newsletter in error, please delete it and accept our apologies
If you are a Novopay Authorised User, and would like to update your email address, please download and complete a NOVO5 form and post it to the Novopay Service Centre. If you are no longer a Novopay Authorised User, please download and complete a NOVO5c form and post it to the Novopay Service Centre. It can take up to two weeks to process these changes. We thank you for your patience