09/09/2020
Hello,
New Tax Rate 39%
Today (9th Sept 2020) Labour have announced a new tax rate of 39% on personal income exceeding $180,000 per annum. Key points we know so far:
• Applies to individuals only, i.e. an individual on a salary of, say, $200,000 will pay an additional $1,200 per annum
• It does not apply to combined household income, i.e. a couple each earning $100,000 for a total of $200,000 per annum will not pay any more tax
• All other rates and brackets remain the same
• Any new taxes or further income tax increases ruled out for their next term (if elected)
• Applicable from next year
• No changes proposed to trust (33%) or company (28%) tax rates
The last point is significant, emphasising the importance of getting the right business / investment structure in place. There will be tax planning opportunities arising out of the differential between the Trust and Company rates and the new highest rate. It would not suprise us if Labour revisits their position on the trust tax rate as least, but that is how things stand at present. Good time to review your tax position and structure.
ACC pre-invoicing : Has your payroll reduced? Now’s the time to tell ACC.
The world has changed in many ways this year, and ACC is committed to supporting New Zealand businesses through these challenging times.
ACC wants to ensure that your 2020/21 provisional levy reflects the impact COVID-19 may have had on your payroll. You are due to be sent your levy invoice from October.
Your 2020/21 provisional levy is based on an estimate of your liable payroll for the year ending 31 March 2021. To arrive at this estimate, ACC uses the 2019/20 liable payroll information that your business supplied to Inland Revenue.
Between now and the end of September, ACC is encouraging employers to update their estimated liable payroll for 2020/21. This is something you should consider, if you know that COVID-19 has had an impact on your payroll or, is about to. This will help ACC ensure your invoice is as accurate as possible.
If for any reason your final liable payroll (year ending 31 March 2021) is different to your estimate, this will be reflected when the final invoice is issued in 2021.
There are two ways to provide ACC with a revised liable payroll estimate:
1. If you’re an employer with PAYE staff, register or log in at MyACC for Business (simply scroll down to the actions section of your policy information when logged in)
2. If you’re a non-PAYE shareholder, contact our Business Customer Contact Centre on 0800 222776 or at [email protected]
ACC took the decision to delay all invoicing by three months to give businesses more time and flexibility in making their levy payments. Invoices for the 2020/21 financial year which would usually have been sent from 1 July will now be issued from October.
To help you manage payment of your invoice, you will have a choice of payment options.
We can help with any ACC questions, contact us.
Xero Assistance Programme (XAP)
Reminder, if you are a Xero starter, standard or premium plan subscriber, you, your employees and all your families can access face-to-face, telephone, live chat or online counselling sessions as well as the BeneHub and Benestar app. XAP can help with all aspects of life - physical, mental, social and financial. This direct counselling support service is available at no cost to you and it is completely confidential.
To use the service:
• Free phone 0800 360 364 and use the access code XEROCUSTNZ
• Access online at xero.com/nz/xap
If you have employees, be sure to tell them about XAP:
• Here’s a selection of posters
• And an email that can be sent to staff.
For more information on the Xero Assistance Programme check out the website to find FAQs and log in details, or email [email protected].
Keep safe,
Best Regards,
Patsy & All the Team at AccountabilityNet
Be kind and generous, bring the best of who we are and what we do to the world
Xero Assistance Programme is proudly brought to you by Xero & expertly run by our global provider Benestar, a leader in mental health services
