Budget Announcements May 2010 - Updated

None of our MacBusiness packages, nor MoneyWorks, require software upgrades to accommodate the changes to GST or personal tax rates. All the tax rate changes announced can be made via existing settings in the software. We will provide instructions for the appropriate settings on our website mid-September.

Tax changes for April 2010

There are just two tax rate changes this year:  an increase in the maximum income for ACC earners levy and an increase in the rate of the ACC earners levy. No software update is required for changing these rates, see our instructions below.

In addition, Inland Revenue have introduced a new tax code: SB or Secondary Bottom. This is for secondary employment where the total annual income for the employee is not expected to exceed $14,000. If you need to use this tax code you will need to update your software ($62 + GST). Go to our Purchase page to purchase the upgrade with a credit card, or call us for an invoice and direct credit instructions.

Inland Revenue have also changed the ir-File format this year to accommodate payroll giving. If you have the full version of MacBusiness Payroll and use the ir-File Export function you will need to update your software to produce the new format before you submit your return in May ($62 + GST). Go to our Purchase page to purchase the update with a credit card, or call us for an invoice and direct credit instructions.

Instructions for changing ACC rates

The ACC rate changes need to be aplied AFTER the last pay run for the March 2010 tax year has been posted, and BEFORE the first pay run for April 2010. The best time for this change is just before you load your first pay run with a period ending date in April.

Launch Payroll using the more powerful of your two passwords (the one starting with "S", or your own password if you have changed it).

- Click the Setup button, then Preferences

- Click the Tax / ACC/ KiwiSvr tab

- In the field labelled ACC Rate enter 2 (replacing 1.7)

- In the field labelled ACC Max Income enter 110018 (replacing 106,473)

You can now go ahead and process your first April pay run.

Save $100 on Payroll Software!

The price of MacBusiness Payroll software has dropped $100! Now only $699 for the full version and $499 for the Lite version (+ GST). There has never been a better time to buy. Go to our Purchase page to buy now with a credit card, or call us for an invoice and direct credit instructions.

Payroll Giving

We plan to include support for Payroll Giving in MacBusiness Payroll from the second quarter of 2010, as part of a larger upgrade. To learn more about Payroll Giving, visit the following IRD web page Payroll Giving.

Windows 7 Compatibility

Our tests to date indicate no compatibility problems with all current versions of our applications running on Windows 7.

Snow Leopard Compatibility

Our tests to date indicate no compatibility problems with Payroll running on Snow Leopard (Mac OSX 10.6) so long as Rosetta has been installed.  There has been a report of problems with the 10.6.1 upgrade, which we have not been able to replicate. At this stage we recommend proceeding directly to the 10.6.2 upgrade before running Payroll.

All versions of MacBusiness POS, except version 3.1, are compatible with Snow Leopard (Mac OSX 10.6). Contact us for a free update if you are using version 3.1

All versions of MacBusiness Job Tracking are compatible with Snow Leopard (Mac OSX 10.6).

Current versions of MoneyWorks accounting packages are all compatible with Snow Leopard (Mac OSX 10.6).

 

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Tax Rate Changes for 1 April 2008

MacBusiness Payroll enables you to change tax rates for 1 April 2008 yourself by following the simple instructions listed below. NO SOFTWARE UPDATE IS REQUIRED.

Click Payroll Settings April 08 to download these instructions as a pdf document.

This year the changes required are: an increase in ACC earners' levy, an increase to the maximum income level for the ACC earners' levy, and an increase to the student loan threshold.

This means changing just three numbers in Payroll.

The changes need to be applied AFTER the last pay run for March 2008 tax year has been posted, and BEFORE the the first pay run for April 2008 is posted. The time for this change is your first pay run with an April Payment Date.

1. Launch PAYROLL using the more powerful of your two passwords (the one starting

   with "S")

2. Click the Setup button, then Preferences

   (If you don't see a Setup button on the main menu you are using an obsolete version

    of Payroll. Contact us regarding an upgrade.)

3. Click the Tax / ACC / KiwiSvr tab

  In the field labelled ACC Rate enter 1.4 (replacing 1.3%)

  In the field labelled ACC Max Income enter 102922 (replacing 99,817)
  In the field labelled Threshold SL enter 18148 (Replacing 17,784)

That's it! Now click the Menu button to continue using Payroll.

KiwiSaver Compulsory Employer Contributions starting April 2008

For employees that are enrolled in KiwiSaver, employers must contribute at least 1% of their gross pay to KiwiSaver from the first full pay period in April.

Click Payroll Settings April 08 to download these instructions as a pdf document.

MacBusiness Payroll allows KiwiSaver rates to be modified so this is an easy change to implement. NO SOFTWARE UPDATE IS REQUIRED.

The changes need to be applied after the last pay run STARTING in March 2008 tax year has been posted and before the first pay run STARTING in April 2008 is posted. This may not be your first pay in April. If the first pay in April is for a period starting in March, wait until the next pay.

1. Launch PAYROLL using the more powerful of your two passwords (the one starting

  with "S")

2. Click the Setup button, then Preferences

   (If you don't see a Setup button on the main menu you are using an obsolete version

    of Payroll. Contact us regarding an upgrade.)

3. Click the Tax/ACC/KiwiSvr tab

   In the KiwiSaver field labelled Employer Minimum enter 1 (replacing 0%)

   If you have decided to apply transitional KiwiSaver rates (see Inland Revenue

   KiwiSaver Employer Guide – KS4) enter your chosen rate (2, or 3) in both the

   Employee Minimum field and Employer Minimum field.

   (If you don't see an Employer Minimum field on this screen you are using an obsolete

   version of Payroll. Contact us regarding an upgrade.)

4. Click the Defaults tab

   If the field labelled KiwiSaver Employer Contribution is 0 enter 1

   Note that you can contribute at a higher rate if you wish, e.g. 2, 3, or 4. See Inland

   Revenue’s KiwiSaver Employer Guide (KS4).

5. Click the Employees Button.

6. Click on the first employee in the list that is already enrolled in KiwiSaver

7. If the Employer Contrib Rate is 0% click on either of the KiwiSaver rate fields

   and enter 1 in the field labelled Employer Contribution Rate (replacing 0%).

   If you have decided to apply transitional KiwiSaver rates, enter your chosen rate

   (2, or 3) in both the Employee Deduction Rate field and the Employer Contribution

   Rate field.  Click OK.

8. Click the List button, then click the next employee who is enrolled in KiwiSaver.

   Repeat step 7.

That's it! Now click the Menu button to continue using Payroll.

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Employer Tax Credit for KiwiSaver Contributions

You can claim back your Employer Contributions to KiwiSaver up to a maximum of $20 per week per employee. You make this claim each time you pay Inland Revenue, i.e. once per month (twice per month for large employers) by subtracting it from your PAYE total. There will be a box for this claim on the IR345 form that Inland Revenue sends you in April.

MacBusiness Payroll does not calculate this tax credit as specifications were issued too late for us to prepare an update (some details were not finalised until the end of February!). However, the tax credit is easy to calculate manually:

Click Payroll Settings April 08 to download these instructions as a pdf document.

- If your Employer Contribution Rate is 1% and none of your employees enrolled for KiwiSaver earn more than $100,000 per year, simply enter your total employer contribution as your claim.

- If your Employer Contribution Rate is 2 % and none of your employees enrolled for KiwiSaver earn more than $50,000 per year, simply enter your total employer contribution as your claim.

Otherwise, choose the Period Range Totals from the Reports menu, click Payment Dates and choose the relevant pay period. Check in the KiwiSaver Emplyr column whether any of the totals exceed the monthly maximum allowed (see Inland Revenue Employers Guide for claiming your tax credit (KS35) that arrived with your 2009 tax tables for a table of monthly maximums - step 3).

If any employer contributions exceed the monthly maximums you must subtract the difference from your total contributions and enter the result as your claim.

Note for Large employers: the maximum you can claim back on your mid-month return is $40 per employee. You claim the balance in your end-of-month return.

The next update of MacBusiness Payroll will calculate your Employer Tax Credit automatically.

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Windows Vista compatibility

Our tests to date indicate no compatibility problems with any of our packages running on Windows Vista.

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