The Minimum Wage
From April 1st 2022, the minimum wage will be raised from $20.00 an hour to $21.20 an hour. Employees on the Starting Out or Training wage will have their minimum increased from $16.00 an hour to $16.96 an hour. This is an important financial obligation to be aware of, however, in terms of payroll, we’ve got you covered. Come April 1st, we’ll be ready to update your system to use the minimum wage where appropriate. And if anything goes wrong, don’t hesitate to contact our support team!
ACC Earners Levy & Threshold
The new tax year will see some changes to both the ACC Earners’ Levy and the maximum amount one can earn before the levy does not apply to those earnings. The ACC Earners’ Levy will increase from 1.39% of an employees’ annual income to 1.46% of an employee’s annual income. Previously the maximum earnings that could have the levy applied to them was set at $130,911 per annum. However, with the new tax year, this will increase to $136,544 per annum.
Student Loan Threshold
If an employee earns $20,280 or less per annum, which is $390 or less per week, then the employee should not have any deducted income taken out of their pay to be paid toward their student loan. With the new tax year, this will change to $21,268 or less per annum, which is $409 or less per week. This means that more low-income earners will be able to benefit from having more pay in their pocket with each payday.