Payroll Update 19 March 2020

News for School Payroll Staff


Tena koutou

We know you'll have a lot on your mind at the moment, but we still have some important payroll information to share with you. All information about schools' management of COVID-19 will come from the Ministry. Keep an eye on the Ministry's website for daily updates.

In this edition of Payroll Update:

  • Non-teachers - new rates and back pay this pay period
  • CA/IEA implementation back pay examples
  • Completing a NOVO22nt?
  • Please check your Authorised User report in Novopay Online
  • Reminder: SCCA automatic increments in pay period 2
  • Correct Special Tax Codes before 1 April

Non-teachers - new rates and back pay this pay period

Employees on recently settled collective agreements

Next Wednesday 25 March, all non-teaching staff covered by a recently settled collective agreement will receive the increase backdated to the date of settlement.

Remember that if your school is already choosing to pay staff more than their minimum collective agreement step, they might not see an increase, unless you choose to increase the SALLO for future pay periods.

Non-teacher IEAs - sign by 31 March for backpay

The pay increases for non-teaching staff on individual employment agreements will also start being paid from Wednesday 25 March, provided the employee has signed their new agreement and the NOVO22nt has been received and processed by Education Payroll.

If IEAs are signed by 31 March, but the NOVO22nt has not yet been received or processed, the increase and back pay will be paid in the next available pay period.

Those who sign after 31 March will receive any pay increase due from the actual date of signing, but no back pay. If your school is already choosing to pay staff more than their minimum individual employment agreement step, they might not see any increase, unless you choose to increase the SALLO for future pay periods.

Holiday pay adjustments

Some term-time only and timesheet employees will receive an additional holiday pay adjustment. This is a top-up of holiday pay received in December 2019 and reflects the pre- and post-settlement holiday pay which needed to be recalculated. This adjustment will be paid in pay period 03 (pay day 6 May) for union members and pay period 05 (pay day 3 June) for non-union employees. The back pay payments need to be processed before the adjusted holiday pay at the new rates and the amounts payable can be determined.

Agreements for groundstaff

The agreement for groundstaff at area and secondary schools is currently being negotiated. If you have a new employee starting this work, please contact employment.relations@education.govt.nz for assistance with their employment agreement.


CA/IEA implementation back pay examples

Below are some examples to help you explain any queries you receive from employees about their pay.

Support Staff in Schools example

A support staff employee who was on the 2017 CA on step five will have been earning a minimum of $18.21 an hour.

Under the 2019 agreement, they will move to step one, and will now be entitled to a minimum of $21.15 an hour - a difference of $2.94 an hour. This support staff employee works 17 hours every week. The CA was promulgated on 29 November 2019*, which means they are entitled to back pay for:
  • seven pay periods (14 weeks), plus
  • a partial pay period of three days (for 29 November-3 December). For the number of hours, refer to the employee's work pattern.
  • For this example, the three days are highlighted below.
  • This calculation is 14 weeks times 17 hours, which is 238 hours, plus 11 hours for the partial pay period - a total of 249 hours.
  • The employee was on $18.21 and is moving to $21.15, which is a difference of $2.94.
  • $2.94 x 249 hours = $732.06 back pay (before tax).

*The IEA was promulgated 13 December 2019 - remove two weeks from your calculation.

School Caretakers, Cleaners and Canteen Staff example

A caretaker who was on 2017 IEA on step four will have been earning a minimum of $17.95.

Under the 2020 agreement, they will move to step one, and will now be entitled to a minimum $21.15 an hour. This caretaker works 17 hours every week. The IEA was promulgated on 17 January 2020*, which means they are entitled to back pay for:
  • four pay periods (eight weeks), plus
  • a partial pay period of eight days (for 17-28 January). For the number of hours, refer to the employee's work pattern.
  • For this example, the eight days are highlighted below.
  • The calculation is eight weeks times 17 hours, which is 136 hours, plus 28 hours for the partial fortnight - a total of 164 hours.
  • They were on $17.95 and moving to $21.15 an hour, which is a difference of $3.20.
  • $3.20 x 164 hours = $524.80 back pay.

*The CA was promulgated 11 December 2019 - remove the partial pay period and add seven weeks to your calculation

Kaiarahi i te Reo, Therapists, ATSSD, Special Education Assistants example

A therapist in schools who was on the 2017 IEA on step four will have been earning a minimum of $56,636, which is $28.58342 an hour (the divisor is 1981.42 hours per year).

Under the 2019 agreement, they will stay on step four, but will now be entitled to a minimum of $58,335, which is $29.44088 an hour. This therapist works 17 hours every week. The IEA was promulgated on 13 December 2019*, which means they are entitled to back pay for:
  • six pay periods (12 weeks), plus
  • a partial week of three days (for 13-17 December).
  • For this example, the three days are highlighted below.
  • This calculation is 12 weeks times 17 hours, which is 204 hours, plus 11 hours for the partial week - a total of 215 hours.
  • They were on $28.58342 an hour and moving to $29.44088, which is a difference of $0.85746
  • $0.85746 x 215 hours = $184.35 back pay.

*The CA was promulgated 29 November 2019 - add an extra two weeks to your calculation.


Completing a NOVO22nt?

The NOVO22nt (PDF) is used for advising both IEA changes and annual increments for non-teachers.

Annual increments and IEA changes must be on separate lines, even if for the same employee.

When filling out a NOVO22nt to advise IEA changes, please leave fields 6 to 9 blank, as these are only for annual increments. Complete all other fields.

If you're advising an annual increment, leave fields 10 and 11 blank. Complete all other fields.


Please check your Authorised User report in Novopay Online

It's also a good time to check who the authorised users are at your school and consider whether you need to add an additional back-up. You can run a report in Novopay Online to find your current users. Go to My Reporting and select Online Access/Audit on the left-hand menu.

Send in a NOVO5 to set up a new user. Please ensure you have filled in every field and that it is signed by the Principal or a designated Board Member.


Reminder: SCCA automatic increments in pay period 2

As mentioned in our previous newsletter, eligible employees who remain on the 2017 School Caretakers' Cleaners' and Canteen Staff IEAs will automatically receive an increment in Pay Period 02, as per their agreement.

Eligible supervisors on the 2019 School Caretakers' Cleaners' and Canteen Staff CA or IEA will also automatically receive an increment in Pay Period 02.

Advise us by Friday 27 March if any employees covered above should not receive their annual increment by sending in a NOVO31 with 'Deferral' in the subject line.


Correct Special Tax Codes before 1 April

Employees with a Special Tax Code (STC) need to correct their tax code with Inland Revenue and Education Payroll before the end of the tax year. Please update your employees' tax codes in EdPay for every tax instruction you receive. This will ensure that your employees' correct tax codes take effect in Pay Period 01.

Select the employee then Financial Details on the left-hand menu. Scroll down to Other Financial Details and click the (+) symbol (below) to change a tax code.


Please ignore the Start and End Date that displays when you click save - your payroll adviser will update it.

For more information on Special Tax Codes (aka tailored tax codes), please check the IRD website.