New RWT on interest rate
Individuals will have the option to change their resident withholding tax (RWT) rate to 39% with their payers of interest, such as banks and other financial institutions. The new RWT on interest rate aligns with the new 39% personal tax rate that came into effect on 1 April 2021
New Child Support legislation
New legislation for child support will come into effect making it compulsory for child support payments to be deducted from the salary or wages of returning liable or newly liable parents.
The IRD will inform employers of any employees who become liable for child support payments. The IRD will also provide the information needed to make deductions from salaries / wages.
On 1 April 2021, it became a requirement for all employers to use the latest version of payday filing (Version 2) when submitting their Employment Information and Employee Details returns. When the IRD goes live with their final release, Version 1 will be retired for filing.
If an employer is still using the ‘file upload’ option to manage payroll in myIR, they must ensure their file format is updated to payday filing version 2.
Employers must amend Employment Information files using the same version they filed through, so Version 1 amendment files (EIA) will continue to be accepted.
The following webinar provides more information on the changes coming for businesses and employers: