INCREASE IN MINIMUM WAGE HOURLY RATE
As from 1 April 2013 the minimum wage is to rise by 25c an hour to $13.75.
The training and new entrants minimum wage will increase from $10.80 to $11.80.
PAYROLL CHANGES FROM 1 APRIL 2013
· Minimum employee deduction and employer contribution for KiwiSaver increases from 2% to 3%.
· PAYE is to be deducted from wages to primary and secondary schoolchildren plus they must complete a Tax code declaration form (IR 330).
· The ML and ML SL low income tax codes can no longer be used. Employees affected must complete a new Tax declaration code form (IR 330).
· Student loan deduction increases from 10% to 12%.
OTHER TAX CHANGES
· Student loan repayment holiday while overseas reduced from 3 years to 1 year from 1 April 2012.
· Tax credit for income under $9,880 removed from 1 April 2012.
· Childcare and/or housekeeper tax credit removed from 1 April 2012.
· Student loan extra repayments bonus removed from 1 April 2013.