Preparing for upcoming changes · 3/4/2020 · IN CONFIDENCE Preparing for upcoming changes...
Transcript of Preparing for upcoming changes · 3/4/2020 · IN CONFIDENCE Preparing for upcoming changes...
![Page 1: Preparing for upcoming changes · 3/4/2020 · IN CONFIDENCE Preparing for upcoming changes Webinar for Tax Agents and Bookkeepers 4 March 2020, 2:30pm –3:30pm](https://reader034.fdocuments.net/reader034/viewer/2022050212/5f5e3c78b9626f1108027fa3/html5/thumbnails/1.jpg)
IN CONFIDENCE
Preparing for upcoming changesWebinar for Tax Agents and Bookkeepers4 March 2020, 2:30pm – 3:30pm
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IN CONFIDENCE
Trish Spence-Manning,
External Relationship
Manager
Welcome to your webinar
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IN CONFIDENCE
How to participate
Certificate of Attendance
Slides
Presenter info
Submit your questions here
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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
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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
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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
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IN CONFIDENCE
Generic myIR changes
• “My details” tab renamed to “Names and addresses”
• Registration details move to Summary tabs
• ‘Application for relief’ available
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IN CONFIDENCE
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
What’s changing for employers
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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
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IN CONFIDENCE
Employer/Payroll account in myIR
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IN CONFIDENCE
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
Employer/Payroll account in myIR
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IN CONFIDENCE
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)
What’s changing for employers (cont.)
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IN CONFIDENCE
We’re improving the onboarding process
• New Employee Details (IR346) and KiwiSaver Enrolment (KS1) forms combined
What’s changing for employers (cont.)
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IN CONFIDENCE
Employee onboarding
-14
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IN CONFIDENCE
Employer/employee relationship in myIR
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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)
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IN CONFIDENCE
File and pay when submitting employee information
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IN CONFIDENCE
PAYE calculator on IR website
• Export what’s been entered for employees into an EI
What’s changing for employers (cont.)
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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
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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
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IN CONFIDENCE
Income equalisation (EQU)
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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
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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
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IN CONFIDENCE
Overdue and interim repayments
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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
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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)
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IN CONFIDENCE
Temporary shut down
• Our website will continue operating
• You can still pay via online banking
IR Offices, myIR, E-file & call centres will be
temporarily unavailable:
From 3pm, Thursday 9th April 2020
Back online 8am, 16th April 2020
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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
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IN CONFIDENCE
• 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
Tax-agent and Business seminars
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IN CONFIDENCE
Watch the presentation on demand
Next stepsPlease complete the Feedback Survey
when the webinar ends
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IN CONFIDENCE
www.ird.govt.nz/webinars:
• Watch previous sessions On Demand
• Webinar presentation, questions & answers available on this page
Any other questions?
Send them to [email protected]
Thank you for watching