Preparing for upcoming changes - Webinar for Tax Agents and Bookkeepers 4 March 2020, 2:30pm - 3:30pm - Ird

Preparing for upcoming changes
Webinar for Tax Agents and Bookkeepers
4 March 2020, 2:30pm – 3:30pm
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Welcome to your webinar

      Trish Spence-Manning,
       External Relationship
             Manager

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How to participate

                                Presenter       Certificate of
                                info            Attendance

                                 Submit your questions here
Slides

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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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What’s changing for employers

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

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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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Employer/Payroll account in myIR
 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

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What’s changing for employers (cont.)
 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)

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What’s changing for employers (cont.)

  We’re improving the onboarding process
  • New Employee Details (IR346) and KiwiSaver
    Enrolment (KS1) forms combined

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Employee onboarding

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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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What’s changing for employers (cont.)

 PAYE calculator on IR website
 • Export what’s been entered for employees into an EI

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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

     IR Offices, myIR, E-file & call centres will be
               temporarily unavailable:

             From 3pm, Thursday 9th April 2020
              Back online 8am, 16th April 2020

 • Our website will continue operating
 • You can still pay via online banking

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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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Tax-agent and Business
seminars

•   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

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Next steps
Please complete the Feedback Survey
       when the webinar ends

   Watch the presentation on
           demand

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Thank you for watching
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
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