Stay informed with legislative changes
|If you're paid...||Your repayment threshold|
From 1 April 2019, employees who are affected by domestic violence have new entitlements and rights, so we’ve updated our payroll system to support this. This is a sensitive issue where privacy is very important, so we’ve outlined the changes below and explained what this means for our payroll system.
About the Domestic Violence – Victims’ Protection Act 2018
The Domestic Violence – Victims’ Protection Act 2018 amends a number of Acts with a view to enhancing legal protections for victims of domestic violence.
‘Employees who are affected by domestic violence’ means violence towards the employee by a person with whom they are, or have been, in a domestic relationship. It also includes employees residing with a child against whom someone inflicts, or has inflicted, domestic violence.
Employees who are affected by domestic violence are entitled to request a short term variation to their working arrangement for the purpose of dealing with the effects of domestic violence. An employer is obliged to deal with this request as soon as possible and not more than 10 working days after receiving it.
A new type of leave called ‘Domestic Violence Leave’ is available for employees to deal with the effects of domestic violence against them or against a child that resides with them. An employee is entitled to domestic violence leave under the same rules as sick leave. That is, after completing 6 months of current continuous employment with their employer, or where this does not apply, if the employee over a period of 6 months, worked for the employer for at least an average of 10 hours a week during that period and no less than 1 hour in every week during that period or no less than 40 hours in every month during that period.
Changes we’re making to our payroll system
Datacom will identify eligible employees based on their current sick leave entitlement rules i.e. if they are eligible for sick leave, they will be eligible for domestic violence leave.
Changes we’re making to our payroll system (continued)
When Datacom introduces this leave type, a balance of 10 days will be inserted for all eligible employees who have already been employed for over 6 months.
Domestic violence leave is paid the same as other BAPS leave types, i.e. Relevant Daily Pay applies where the amount of pay on the day is known, or Average Daily Pay when Relevant Daily Pay cannot be determined.
There is no requirement to pay any unused balance of domestic violence leave on termination.
Due to the sensitive nature of this leave type, employers may acquire personal information about the domestic circumstances of people affected by domestic violence. Employers are bound by the Privacy Act to not disclose this information except in tightly controlled instances.
To assist with this, Datacom is taking the following approach:
The latest version of the payroll specification issued by IRD has changed the way that the ESCT threshold estimate should be calculated for employees that started working in the prior tax year, but have not been employed for the full tax year.
The new approach is demonstrated below, it establishes the amount of pay paid in the first pay period in the new tax year, and bases the yearly estimate on this pay.
For example, employee commenced work on 15 March 2019:
From 1 April 2019 the employee will earn $878.00 gross per fortnight (14 days) with employer super contributions of $26.34
Please note, you will need to change the rate for any employees concerned as Datacom does not automatically change wage rates.
End-of-Year processing will generate a Certificate of Earnings for each employee to show their Gross Taxable Earnings, PAYE etc. for the financial year. Any employee who wish to complete a tax return may need this information. In addition to the Certificate of Earnings, other useful year end reports available are the ACC Premium Report and YTD Summary Report.
There will be a charge on your April invoice for End-of-Year processing. This charge is based on 70 cents for each employee paid in the financial year and covers reports, certificates and the additional processes required to ready the file for the new financial year.
End-of-Year processing for 2018/2019 will occur automatically during the first pay-run that has a payday that falls in April 2019, with the direct credit release date determining when the payday occurs. The actual period-end date of a pay-run does not influence this decision.
When a pay-run is deemed to be the first for April 2019, all End-of-Year processing for that company will be actioned as at the previous pay period.
A pay-run with a period-end date of 31 March 2019 is given a DC Date of 28 March 2019:
This section will highlight legislation changes that apply from 1 April 2018
This section will highlight the 2018 End-of-Year Processing