The NZ Government announced its “out with the old and in the new” policy details on the new Holidays Act replacement. Is this the saviour of our payroll pain, or another sour lemon we all end up sucking on? Our current Holidays Act is a broken system and has been for a long time, and I am hoping for something that is going to be a lot more workable for… Read more
In today’s digital-first world, cyber security is no longer just an IT issue—it’s a business imperative. Whether you’re a sole trader, a growing enterprise, or a well-established company, protecting your digital assets is as crucial as safeguarding your physical ones. At Ontrack, we believe in empowering businesses with practical tools and knowledge. And this topic is very close to our hearts given a ransomware attack in 2022 on a piece… Read more
Budget 2025: Key KiwiSaver Changes The government announced some key changes to the KiwiSaver scheme in its Budget 2025 announcement. Some started on 1 July 2025, with most affecting payroll kicking in 1 April 2026. The key changes are: For the year starting 1 July 2025,tThe government contribution will be cut from 50 cents to 25 cents per $1, with the maximum contribution reduced to $260.72 (NZers must be contributing… Read more
The Commissioner of Inland Revenue conducted a review and has released their Operational Statement in relation to the Kilometre rates for the business use of vehicles for the 2025 year. The rates actually relate to last financial year, the 2024/2025 year, and are used to determine a business tax deduction for motor vehicles used by a self employed business owner or close company. They can do this by either claiming… Read more
Most business owners receive plenty of well-intentioned advice and ‘helpful opinions’ from family and friends… and social media. However, good business advice spoken from commercial experience is another matter entirely. That’s not to say it’s hard to find, but finding a reputable source in the chaos of the Internet age is sometimes less than straightforward – especially if you have specific problem to solve and time is limited. This is… Read more
1st April always see’s changes for payroll. Below is a summary of the 1 April 2025 updates: ACC Earners Levy – updating to 1.67 cents ACC Earner threshold – updating to $152,790.00 Minimum Wage – Adult Min Wage increasing to $23.50. Starting Out/Training Wage increasing to $18.80 Extra pay Tax in Termination Pays – Updated method for calculating Extra Pay Tax on Termination Pays Tax Codes – No change this… Read more
New Zealanders on salary or wages may find that once their income tax assessment has been calculated automatically, they end up having tax to pay – and suddenly it’s panic stations! (Don’t worry, this happened to me, and I did the same!). There may be a reason for it! If you get paid on a Monday, this year there are 53 weekly pay periods, as opposed to 52 weekly pay… Read more
Parliament has been debating the merits of the Wage Theft Bill since April 2023. The Bill progressed to the final stages of the parliamentary review process recently and will now move to its third and final reading before receiving royal assent and being enacted into law. This bill clarifies that it is considered theft when an employer does not pay an employee their full legal entitlements, which may include unpaid… Read more
Sales and profit are two very different things – as a business owner, you can find yourself without the cash to pay bills despite making sales you knew were profitable. You may also be startled to discover that strong cash flows from sales deliver little profit. What exactly is cash flow? A cash flow forecast tracks cash flowing in and out of your business. The timing of these flows enables… Read more
This year, Christmas Day falls on Wednesday, with Boxing day on Thursday. The same with New Years Day and The Day After New Years Day (they so need a better name for this day!). So no Mondayising of any of these public holidays this Christmas. Here is what you need to know about rights for employees and obligations for employers. Payment for working a public holiday Employees must be paid… Read more
Most people are not aware that technically, legislation says that annual leave payments need to be paid, in full, before an employees leave is taken. Thinking about why this is, takes us back to the days of being paid with a little brown envelope fill of cash, and the fact the employee won’t be here the following pay day to collect that cash. Yes, that legislation is outdated like a… Read more
There is nothing in the Act to determine when a payment must be made when an employee’s employment is terminated. There is so much to do for a final pay, and it can become a rushed activity on the final day of employment with the potential to get it wrong. If agreed between the parties, then it can be paid on the next pay day after termination or on the… Read more
With Christmas coming up fast like a freight train without any brakes and the payroll team are working hard to manage all the extra payroll changes over this time. One of the biggest questions this year is “When do I have to pay my staff?” With Wednesday and Thursday both being public holidays, and popular days for payment of wages, what happens now that we have 24 hour banking? There… Read more
Employees are one of the biggest costs, and the most important asset to a business, and annual holidays are a really important part of your teams health and wellbeing. Ensuring your team are getting what they are entitled to is your responsibility as their employer. If you don’t get it right, it can cause frustration for the employee, friction in the workplace and could land you in hot water with… Read more
Setting the ESCT rate for the next tax year is a 1 April activity that Payroll are responsible for. As part of your payroll checks and balances, you must check your payroll system is doing as expected. If you are processing payroll manually, you will need to set the ESCT yourself. Understanding how ESCT is essential to getting this right for anyone involved in payroll. What is ESCT? ESCT (Employer… Read more
Paying overtime to salaried staff has many consequences that a lot of employers are not aware of. The purpose of a salary is to pay an all-inclusive rate that is a fixed, regular payment to an employee for the work they perform. It allows a business to plan and forecast labour costs on an annual basis and can also provide concise data for business planning over the coming years, as… Read more
Remediation of your payroll system can seem extremely intimidating. There is a lot involved in the process of checking payroll for Holidays Act 2003 compliance. This information comes from the FAQ section of the Labour Inspectorate website so we thought we would share some of this here. How far back should re-calculations go? Once non-compliance with the Holidays Act 2003 is identified, the expectation of the Labour Inspectorate is that… Read more
We so often complain about how busy we are and that there is not enough time for everything. But what is it that you are actually focusing on? Are you including all the things that are important and necessary for your health and wellbeing? If you are, then you will be living a life that is meaningful and leads to optimal health and wellbeing. If you are not, you will… Read more
As a business owner or manager, you need to be ready for the minimum wage rates increase from 1 April 2024. The details of the increase are: Adult minimum wage will go up from $22.70 to $23.15 per hour. Starting-out and training minimum wage will go up from $18.16 to $18.52 per hour. All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child… Read more
As a business owner, you’re the architect of your business’s vision and culture. But in the hustle to develop products, chase sales, and keep the lights on, some of the foundation often gets lost in the mix. Core values—those guiding principles that shape your company’s identity—are more than just words on a wall or a statement in a handbook. These aren’t just buzzwords to sprinkle throughout your website – your… Read more