preparing for upcoming changes · 3/4/2020 · in confidence preparing for upcoming changes...
TRANSCRIPT
IN CONFIDENCE
Preparing for upcoming changesWebinar for Tax Agents and Bookkeepers4 March 2020, 2:30pm – 3:30pm
IN CONFIDENCE
Trish Spence-Manning,
External Relationship
Manager
Welcome to your webinar
IN CONFIDENCE
How to participate
Certificate of Attendance
Slides
Presenter info
Submit your questions here
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
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
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
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
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.)
IN CONFIDENCE
We’re improving the onboarding process
• New Employee Details (IR346) and KiwiSaver Enrolment (KS1) forms combined
What’s changing for employers (cont.)
IN CONFIDENCE
Employee onboarding
-14
IN CONFIDENCE
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
PAYE calculator on IR website
• Export what’s been entered for employees into an EI
What’s changing for employers (cont.)
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
• 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
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
• 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
IN CONFIDENCE
Watch the presentation on demand
Next stepsPlease complete the Feedback Survey
when the webinar ends
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