Payroll Update – 05 March 2020

News for School Payroll Staff

Payroll Update - 05 March 2020

News for School Payroll Staff

Tena koutou

Congrats to everyone for completing Start of Year. The End of Year/Start of Year period is the busiest time for school payroll administrators and Education Payroll staff. We had record-breaking numbers of tickets received, tickets processed and phone calls answered during this period.

Start of Year screens close this Friday 6 March at 5pm. If you have any further changes after this time, please use EdPay or send in a NOVO form as per normal processes.

In this Payroll Update:

  • Non-teachers - back pay
  • SCCCA automatic increments in pay period 2
  • What you need to do if your employee is on ACC
  • Reminder: Special Tax Codes

Non-teachers - back pay

On 6 March, schools will receive additional funding from the Ministry of Education to assist meeting the costs of back payments and pay increases up to 31 March. These pay increases arise from the collective agreements and individual employment agreements that were promulgated last year and earlier this year. The Ministry will advise schools on 6 March via the school data portal the detail of the additional funding breakdown. Check the Ministry's website for more information on how the funding has been calculated.

Employees on recently settled collective agreements

On 25 March (pay period 26), 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.

Employees on new individual employment agreements - deadline 31 March

The pay increases for non-teaching staff on individual employment agreements will also start being paid from 25 March, provided the employee has signed their new agreement and the NOVO22nt has been sent to Education Payroll. They will also be eligible for back pay provided they sign the agreement by 31 March. Those who sign from 1 April onwards will receive any pay increase due, but no back pay.

The 31 March deadline is an extension from the Ministry's original deadline of 29 February. See the Ministry Bulletin (PDF) for more information. That means there will be many NOVO22nt forms coming in to Education Payroll between now and 31 March. We'll process these as quickly as possible.

Remember that 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.

Agreements for ground staff

The agreements for ground staff at area and secondary schools are currently being negotiated.

Explaining the payments to your staff

Education Payroll understands that payslips don't currently have all the information employees need to check their pay. It's something we'd like to fix for the future, but it's a big job and is some way off. We will provide some example calculations for employees in some common scenarios in the next Payroll Update to help explain how the calculations are made.

In the meantime, your dedicated payroll adviser is here to help you explain the calculations to concerned staff, via email or over the phone. If volumes are high, we will respond as quickly as we can.

Collective agreements are found here

Individual employment agreements are found here

SCCA automatic increments in pay period 2

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.

Alternatively, these employees can opt to sign the new 2019 IEA. This provides for an increment as well as back pay to 17 January 2020. To be eligible for the back pay, a 2019 IEA needs to be signed by 31 March, and a NOVO22nt sent to Education Payroll for processing. Note that schools are funded for this back pay by the Ministry of Education.

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

Schools need to advise us by Friday 27 March if any employees covered above should not receive their annual increment. They can do this by sending in a NOVO31 with 'Deferral' in the subject line. You do not need to send a NOVO31 for employees who are moving to the 2019 IEA, just the NOVO22nt.

What you need to do if your employee is on ACC

If your employee has an accident or injury covered by the Accident Compensation Corporation (ACC) scheme, you need to do the following:

  • Advise the employee to contact Accident Compensation Corporation (ACC) and request weekly compensation.
  • If the work-related injury is for less than a week (not exceeding five continuous days for a non-teacher and seven continuous days for a teacher), you will need to submit a NOVO12acc leave booking form (PDF) advising ACWK1 - WorkRelated W1 for the Leave Code. The first week of injury is considered a stand-down period to ACC, therefore this cost is covered by the school.
  • Send any forms labelled ACC3, ACC72 or ACC38 you receive from ACC to as soon as possible. The ACC forms will be completed by us.

For more information, please visit our ACC page.

Reminder: Special Tax Codes

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 employee's tax code 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.