Preparing for upcoming changes Webinar for Tax Agents and - - PowerPoint PPT Presentation

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Preparing for upcoming changes

Webinar for Tax Agents and Bookkeepers 4 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
• Sent to you if client’s mail is redirected
• 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

• on 31 March 2021 if your client has an extension of

time (EOT)

• 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 –

• ther 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
• Employer’s employment info – stop/start deductions
• 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
• Direct debit authority required when new payment bank

account added

• Replaces current process
• One-off process, set up for each new bank account in myIR
• Can no longer initiate direct debit payment for client

approval in myIR

• 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
• ut 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:
• Twitter
• LinkedIn
• 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 steps

Please 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