preparing for upcoming changes · 3/4/2020  · in confidence preparing for upcoming changes...

IN CONFIDENCE

Preparing for upcoming changesWebinar for Tax Agents and Bookkeepers4 March 2020, 2:30pm – 3:30pm

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Trish Spence-Manning,

External Relationship

Manager

Welcome to your webinar

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How to participate

Certificate of Attendance

Slides

Presenter info

Submit your questions here

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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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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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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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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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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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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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Employer/Payroll account in myIR

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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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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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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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Employee onboarding

-14

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Employer/employee relationship in myIR

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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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File and pay when submitting employee information

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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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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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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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Income equalisation (EQU)

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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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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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Overdue and interim repayments

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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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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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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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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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• 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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Watch the presentation on demand

Next stepsPlease complete the Feedback Survey

when the webinar ends

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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

Thank you for watching