Preparing for upcoming changes Webinar for Tax Agents and Bookkeepers 4 March 2020, 2:30pm – 3:30pm IN CONFIDENCE
Welcome to your webinar Trish Spence-Manning, External Relationship Manager IN CONFIDENCE
How to participate Certificate of Presenter info Attendance Submit your questions here Slides IN CONFIDENCE
What we’ll cover today Are you ready for the upcoming changes? More detail on: Automatically issued income tax assessments • myIR changes • PAYE/employer changes • Payments • Income equalisation • Student loans & KiwiSaver • Shutdown & support • IN CONFIDENCE
Automatically issued income tax assessments No automatically issued income tax assessments for your • clients Requests for more information • o Sent to you if client’s mail is redirected o To client if mail not redirected You will have full control • You need to review and complete assessment • If you (or your client) do not complete assessment it will • be automatically completed o on 31 March 2021 if your client has an extension of time (EOT) o after 45 days if your client does not have an EOT IN CONFIDENCE
A summary of what’s changing Mid-April - Student loans, KiwiSaver, income equalisation and PAYE financial information move into our new system From 1 April 2020 Mandatory electronic investment income reporting • Ring-fencing rental losses • Already in effect Cheques no longer accepted – 1 March 2020 • New electronic RWT exemption register available – February 2019 • New Research & Development tax incentive – October 2019 • Short process rulings – October 2019 • IN CONFIDENCE
Generic myIR changes “My details” tab renamed to “Names and addresses” • Registration details move to Summary tabs • ‘Application for relief’ available • IN CONFIDENCE
What’s changing for employers Employer activities and financials move to our new system Transactions and payments will show up sooner – single employer • account File and pay in myIR • Employer transactions will display differently in myIR: Account name change from ‘Payroll (was ir - File)’, to ‘Payroll’ • Landing page of the Payroll account redesigned • Employment information (EI) return – breakdown of different • deductions will still be shown Twice monthly filers no longer have two periods generated – single • monthly period IN CONFIDENCE
New payment codes EMP – employers can make one payment to cover all employer associated deduction types. Replaces CSE, KSE, KSR, PAY, SLE and SSC ERA – Environment Restoration EQU – Income Equalisation RDI – Research and Development Tax Incentive UCM – Unclaimed Monies IN CONFIDENCE
Employer/Payroll account in myIR IN CONFIDENCE
Employer/Payroll account in myIR EI filed for 14/05/2020 payday, amount column shows total payable so far Second EI filed 28/05/2020 payday which now includes child support deductions – other assessment transactions have reversed/replaced IN CONFIDENCE
What’s changing for employers (cont.) We’re consolidating employer correspondence: Currently based on individual account types • Grouping correspondence by topic • o Employer’s employment info – stop/start deductions o Deductions employers are making – tailored tax code Letter issued to employer when employee’s student loan balance almost paid off Advise of final repayments • Employers collect more information, including hours paid Only via digital channels (Gateway & myIR) • IN CONFIDENCE
What’s changing for employers (cont.) We’re improving the onboarding process • New Employee Details (IR346) and KiwiSaver Enrolment (KS1) forms combined IN CONFIDENCE
Employee onboarding - IN CONFIDENCE 14
Employer/employee relationship in myIR IN CONFIDENCE
Employment information return in myIR New fields added Employee Share • Income (ESS) Extra compulsory • deduction for student loans (SLCIR) Extra voluntary • deductions for student loans (SLBOR) IN CONFIDENCE
File and pay when submitting employee information IN CONFIDENCE
What’s changing for employers (cont.) PAYE calculator on IR website Export what’s been entered for employees into an EI • IN CONFIDENCE
Payment changes Several changes may affect you: No longer accept cheques after 1 March 2020 • Payments by debit or credit card can be made over the phone • – SPK2IR Direct debit changes in myIR from mid-April 2020 • o Direct debit authority required when new payment bank account added o Replaces current process o One-off process, set up for each new bank account in myIR o Can no longer initiate direct debit payment for client approval in myIR o Continue to pay by direct debit if you have signing authority on bank account IN CONFIDENCE
Income equalisation (EQU) Account visible in myIR • Pay by direct debit – no more cheque payments • Withdrawals paid by direct credit – no more withdrawal cheques • Automatic linking with income tax • No more paper deposit/refund forms • Register on myIR • IN CONFIDENCE
Income equalisation (EQU) IN CONFIDENCE
Student loans changes From mid-April 2020, administered in new system: Bring SLS into your workspace • Faster account cessations • Due dates change from 60 to 30 days after due date • Student loan commissioner initiated recovery (SLCIR) notices • automatically issued Analytics used to proactively contact customers • NZ based customers can also pay through SPK2IR • Interest no longer charged and written off • Employer will receive letter when loan almost paid off • Adjusted net income threshold reduced from $1500 to $500 • Pay in myIR from more countries • IN CONFIDENCE
Student loans: myIR changes Improvements and new functionality: Account summary screen – loan balance, balances owed, making • extra payments, and interest rate Student loan account optimised for mobile use • See international travel movements • Repayment calculator • Update “Alternative Contact Person” • Make extra payments • New interest status calculator – see impact of travel • Apply to be “overseas and interest free” • Set preference – overpayments on loan • Apply for hardship and reduced rate on salary and wages • IN CONFIDENCE
Overdue and interim repayments IN CONFIDENCE
Recent KiwiSaver policy changes From 1 April 2019: Two new contribution rates: 6 % & 10% • Contribution holiday renamed to Savings Suspension • Member tax credit (MTC) renamed to Government Contribution • (GVC) From 1 July 2019: KiwiSaver opened to all ages • New members not locked in for 5 years before they can withdraw • From 1 April 2020: Members who enrolled before July 2019 (aged 60 – 64) can opt • out of 5-year lock-in period IN CONFIDENCE
KiwiSaver changes from mid-April 2020 KiwiSaver administered in our new system • Voluntary transfer period reduced from up to 35 to 10 days • Provisional period for new members reduced from 3 to 2 months • Employer contributions government guaranteed • Interest calculated from pay date reported by employer • Three month residency grace period will be removed • Members can make full or partial withdrawal before turning 65 • (qualifying life-shortening congenital conditions) IN CONFIDENCE
Temporary shut down IR Offices, myIR, E-file & call centres will be temporarily unavailable: From 3pm, Thursday 9 th April 2020 Back online 8am, 16 th April 2020 Our website will continue operating • You can still pay via online banking • IN CONFIDENCE
How to get support • Visit the ‘Top solutions for tax intermediaries’ web page: www.ird.govt.nz/solutions • Watch our webinars at www.ird.govt.nz/webinars • Consult your Day 1 Pack • Sign up for our newsletters – e.g. Agents Answers • Contact your Community Compliance Account Manager • Connect with us on: o Twitter o LinkedIn o Facebook IN CONFIDENCE
Tax-agent and Business seminars Approximately 228 seminars for tax • agents and businesses, not-for- profits will be undertaken across the country Seminars will run 23rd March – 8th • April Registrations for these seminars • will be on our website shortly IN CONFIDENCE
Next steps Please complete the Feedback Survey when the webinar ends Watch the presentation on demand IN CONFIDENCE
Thank you for watching www.ird.govt.nz/webinars: Watch previous sessions On Demand • Webinar presentation, questions & answers available on this page • Any other questions? Send them to IRTransformation@ird.govt.nz IN CONFIDENCE
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